What To Do if Tenant Wants To Buy Your Rental?

[Billy Zhao]

Here is a high-level description:

It's SFH in a pretty decent neighborhood. The cash flow is about <$100/mo. The home appreciated very well in the past 13 years since I owned the property, averaging about 7.6% per year increase. It probably will continue to appreciate for a while.

I did a cashout refi on the property but still have a substantial amount of equity in it (45%) thanks to the appreciation.

Should I do a 1031 and find some other better cashflow properties or keep this one? If the tenant is asking for seller financing (assuming he has the ability to pay) should I try that to make some more money on the interest side?

If you had prior experience please let me know. Thanks!