Appraisal came in 25K less than the sales offer

[Ryan Romero]

Hi everyone! I'm a newer member of Bigger Pockets and was hoping to get everyone's take on my situation. I'm likely considered by this group as a rookie investor. I've only done four deals (working on my fifth now). Here's my challenge.... I have a property in Utah that I put on the market a month ago. Its in a very hot market and neighborhood where they've seen sharp inclines in values. I listed the property @ 250K received an offer same day from a nice young couple as their first home purchase. I was worried from the start as they are doing an FHA and knew this market has zero inventory which is why I priced the property at the top of the market. The problem- you guessed it, the HUD appraisal came in 25K less than the agreed purchase price. Even worse, the appraiser is a PITA (pain in the ***), my agent appealed once as did the lender! Which I've never even seen before.

Here's the worst part, I had a long time tenant (7 years) that was in the property and already agreed to move out. So now, I have a vacant rental., no tenant and no sale. Any ideas? I've already posted the property online to rent again so hopefully I can get it filled pretty quick. If I cant figure out a way to do this deal then I'll sit on the property for a while- increase the rent so I can cashflow a little more, then perhaps do a cash out refi so I can have some more cash for my next deal! 

Thanks in advance for your advice!