Exit Strategy Help

[Kesete Thompkins]

Good evening BP Community. I'm a veteran investor trying to think of an exit strategy for an existing 0% seller financing deal that I'm currently paying down. Here are the particulars:

Price: 50K
Amount Owed: Approximately 35K
Interest: 0%
Current Status: Rented but tenant isn't stable with significantly below market rents. With updates, new management, and a new tenant, rents will increase from a late, stressful $675, to an on-time $1150 monthly. 

I got the contract to the house as a part of a two house portfolio. I have a 3 year contract on it, and the term is up in July 2024. I want to close by year's end so that I can place the house under property management and let them stabilize the situation at market rent. I'm not sure how I should proceed. Do I...

Secure private financing, own the house outright, place it under management and use that with other units to get a cash-out refi, or 

Finish out the contract with great terms but deal with an unreliable tenant that's continuing to cost me money monthly and prolong the process of management until the summer.

Thank you for your time and insight. Any thoughts will be helpful. 

Kay

[Kesete Thompkins]

Mike, thanks for the response. I agree with the perspective regarding the loan amount. I'm thinking about private money for that reason. My rationale with paying off the seller now is that once I own the property outright, the eviction process will be easier and I can do a true reset. I can do any upgrades with full ownership and start with a clean slate. 

I inherited the tenants when I purchased the property, which made sense at the time, but it doesn't now and it's costly. 

I want to be strategic with my next move so that I'm not in another precarious position. 

Thanks again for the time. 

Kay