Property under appraises

[Nick Monge]

I'm in the middle of a 1031. I'm selling a SFH in San Antonio for $168,000 and purchasing a multi family in the same area for $168,500.. However the appraisal came back and the new property appraised at $160,000.. For the area and amount of income coming in from the multi, it's still a smart deal.. I'm investing for cash flow. I'll be tripling my cash flow in the 4 unit.

In the contract, I made it so I can back out if the property appraised for under my offer of $168,500... But I don't want to.. What are some thing I can negotiate in lieu of the $8,500 difference?

Basically, I feel I can negotiate something from the sell for me to continue to buy it.. Maybe new appliances in the units, a check for $5,000 (something I can roll into my next property)... Etc..

Any ideas, or advise??

Thanks!