Turnkey pre-sale rent projection discrepancy options?
We are in the process of purchasing a turnkey single family home with an ARV of $95,000. The proforma given to us from the turnkey company projected the rent of the property to be $950/mo. At this point, we have already submitted an offer and earnest money based on the initial opinion of a national property management company that felt that $950 could be reasonable. After speaking recently with a reputable local property management company and having them visit the house, they feel that the house will not rent for more than $750/mo and will be vacant for months at the higher rent. We value the opinion of the local company (based on many reviews from this forum and that they are indeed local) over the national company and are now trying to determine what our options are.
Since the numbers don't work at that lower rent, we see our options as:
1. Back out of the deal and lose the earnest money of $1500
2. Negotiate a less expensive purchase price of the house (which would be about 75,000 to allow for reasonable cash flow)
3. Something else that we aren't aware of??
Has anyone encountered something like this? Do you have any advice or options for us? Thank you so much for your help and time!