Lease Option or Sell?

[Andrew Scott]

Hello BP and thank you for any replies. I've researched the forums but couldn't find a solution to my particular situation. I'm also new to REI so Lease Options and other strategies are still a bit foreign.

Situation:  First time home buyer in 2015 and mortgaged about $80k (paid retail...didn't know better).  I still owe about $70k and est. value around $95k (remodeled kitchen/dining room).  Lost job and had to move across state in 2016 for work but rented it out; currently rent is $975.  My neighbor recently messaged me asking if I would be interested in selling.

Additional info:  My mortgage is about $650 w/taxes.  Since I'm across state I needed property management (10%).  Do do maintenance and repairs I've only been able to break even if not some loss.  $975 is on the  high end for the area.  Advantages to neighbor:  No management company/fees, can do maintenance/repairs himself.

Question: Am I better off selling the property or trying to structure a lease option to nurse some sort of cash flow?  Any other strategies you might suggest?  I know it's an emotional response but my neighbor is a good guy and I want this to be a good deal for both of us.

Thank you BP!