Hydrostatic Test- Windstorm Certificate -Termite Fumigation HELP!

[Kassie Carrell]

1. Please Help!  Here's the deal I decided to sell my rental property, Bevly House, to get out of debt so that I could then reinvest here in New Braunfels, Texas where I live. I am a single mom with a limited amount of income. I currently have a loan at 8.5 percent for 30 years from a private lender. I was loaned 75K to buy this house and fix it up. As you can see from the link I fixed it up and started renting it back in 2013. I lived in it for a year while I fixed it up. I have been paying on this loan for 5 years and owe about 71K. 
2. Here is my dilemma. I had the house up for sell at 129,900. Got an offer for 125K from an investor. Our closing date was set for June 28th, but now they want almost 12K or more worth of things done before closing.
3. There is an apartment in the back that was not rehabbed at all. They want a new hot water heater, electrical etc. The foundation needs to be repaired before anyone can even live in that extra space. I always wanted to fix it up, but because of money constraints I never did. It has potential to be an extra source of income, because I currently rent to A&M college students. It doesn't make sense to make any repairs to the back apartment before the foundation and structure issues are fixed. It's not livable in my opinion at this time.
4. The Hydrostatic test failed so there may be a possible leak and if so they may want to replace all the clay pipes. When I bought the house I had the city come out and test and it was all good. They also want a full tent fumigation for termites and a few other termite type things done to treat wood etc. Costing no less than 3K.
5. The roof was put on when I bought it so it's new, but because I didn't know what I was doing, I didn't get it inspected. So it has to be windstorm certified and they want that too which is going to cost around 4K. 2K for inspector and 2K for roofer to make possible repairs to make it certifiable or whatever that is.
6. My realtor said he needs to know something by noon today and that if I didn't agree to the new amendment then they would probably pull out of the deal. This will also be their first investment according to my realtor.

This is what I need. I need 25K to get out of bad debt. I am going through the Dave Ramsey program and I feel I need to do this to start fresh. I have been listening to as many BP podcasts as I can cram into each day. I am thinking now maybe there is a way I can keep the house and still pay off my debt. I listened to #221 Tim Shiner on the way back from Garner State Park yesterday and I think I heard him say something about being able to borrow on the equity in the house or something. Can I go to my bank NFCU (I have been with them for over 20 years) and see if they will work with me on refinancing? I need to pay back the private lender 71K. The house is worth at least 130K. I am new at all of this and I'll be honest I don't know what I am doing and I am a bit scared. I don't know anyone here in New Braunfels to reach out to for advice, BP is my only source at this time. Can anyone help me or give me ideas on how to go about this? Should I try to keep this house? Can I keep this house and still get out of debt quickly? After realtor fees, closing cost, inspection fees, and now the new amendment cost added to the equation I am not going to make much money on this deal. I had hoped to pay off debt and have 6 months living expenses put aside then I would be on step 4 of DRamsey plan of investing. Now I am thinking I am going to invest anyway, maybe I can make this rental work for me where I can still pay off debt and continue to make money off of it. P.S. I have never had a home loan before or used my VA loan. Any ideas at all would be welcomed. I have to give an answer 7 hours. I have been up all night trying to figure out what to do. I don't want to make a bad decision, but because I am new at real estate investing I don't know what a bad decision looks like right now. I need some guidance.