No Conv Financing Strategy

[Travis Moore]

So....

I have this property in Texas that is owned free and clear currently being rented by a contractor who has done some work for us. 

There is much disagreement about late payments and work they claim they have done to the house, etc. They want to buy it from me for $60k if they can get financed....A disaster story for another forum. 

Anyway the house is in great shape and worth $120k. I just want out of this property altogether and/or if I can pull $60k out of this I would be fine. 

So how can I do this given their credit/finances are a mess and could take some time to fix, if they ever do. 

1. Find some type of private lender willing to do a flexible no doc loan at 50% ltv for them. 

cons - Given they are a consumer without adequate ability to repay it could be tough

2. Refinance out $60k and sell it to them on either a land contract or wrap

cons - land contracts are no no's in texas. Wraps have pitfalls especially ones originated so quickly?

3. Refinance out $60k and just keep them in as renters telling them they are free to purchase anytime for $60k or until I figure out something else. 

not a bad option.

Are there any no doc, asset only 50% ltvs for investor owned properties? I don't want to go the conventional route.