Tenant wants to buy property
I've got a rehab that I did that is currently leased out as it did not sell fast enough for me.
The tenant pays $1,350 per month and my note is $720. The house was purchased for $65,000 and the rehab amount totaled $32,000. We have about $5,500 in holding cost on the home. The ARV came out to around $125,000.
I've had it on the market now for about 4 months.. no bites. The tenant wants to buy the home and made an offer at $114,000. This puts me in the red $1,000.
I would like to get at least $120,000 for the property. The tenant only has $22k for down payment & closing.. he based his $114k offer with a 15% down payment because his lender requires it due to his DTI.
Any ideas here?
I hate to sell this property at such a discount... might just hold on and cash flow.