What's the best play here?

[Michael S.]

Hello!  Wondering how YOU would play this hand?

Purchased a property using a private lender for $27,000 (business partner took title).  Put $21,000 into rehab.  Total investment counting interest/taxes/insurance is $51,000.   Private lender's loan of $27,000 is due in full after 12 months -- it's been 4 months at this point.

Option 1:  Sell for $60,000.  Profit will be roughly $5,000.

Option 2:  I buy it from my business partner for anywhere from $27,000 to $80,000 and rent it out for $1,000 a month.

Option 3:  My business partner refinances the home for $27,000 to $80,000 and pays off lender, rent it out for $1,000 a month.

Option 4:  Your creative solution!

A few notes:

1)  I have a buyer willing to pay $60,000 and I have a renter interested in renting for $1,000 a month.

2) My business partner and I have other rentals together and regardless of who owns it, it will end up in our jointly owned LLC.

3)  We would like to get back our $21,000 investment so we can use it for other opportunities, so ideally if we did Option 2 or 3, we would like to do it for $48,000 or so but not opposed to other ideas!

4)  I have a lender who can do loan as low as $27,000 and it would appraise for $80,000 in my opinion.

5) PITI payment would be about $550/month at a purchase price/refi of about $60,000. Cash flow would be nice and I would have my investment back so am of course leaning this direction.

Thanks everyone!