What would you do? Flippers chime in please!!!

[Kalimah Jenkins]

I purchased a property with a partner two months ago. We estimated that we could turn it in 3 months (still on target), but it had some unknowns that we were aware of (behind the walls). We had a contingency but it wasn't enough. So, we took a hit to our budget. However, we would have come out ok save for a recent comp that is going to kill us. It came in $11k less than our target price. It was an FHA appraisal and while there are other higher prices to support our increased price, this new appraisal is in the same subdivision. Also, the townhouses are almost identical in terms of size, etc. Furthermore, the buyer will most likely be FHA because it is a low income area unless an investor buys it for a hold.

My partner (new to flipping) wants to finish the house as planned. New light fixtures, storm doors, faucets, etc. He thinks that an FHA person is going to come along, love it, and pay the difference. I don't even think FHA will loan in that situation. I say that we should just finish it and get out. Take our losses (we will make a very small profit). In other words, dispense with the storm doors, leave the existing faucets, leave the light fixtures. In other words, save as much as we can on materials. Make it clean, functional, make sure everything works, etc.

The recent comp was not a flip and had similar features.  We are also in a very low price point.

Two questions:

1. Your thoughts on finishes

2. I thought of some other options, can you guys think of others?

   a. Rent it out

b. Don't accept an FHA buyer (longer time on market)?

   c. Lease purchase

   d. Sell and get out

   Any help would be appreciated.