Exit strategies for my property?

[Sipo Thao]

Hey guys!

So I own this property near Downtown Fort Worth in Texas.  C class neighborhood decent appreciation, 1998 brick build.

I was just thinking about what I should do when my ARM adjusts in 5 years. Here are the details:
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Purchase price: 58k
Loan from bank: 5 ARM, 55K, 5.25% interest, 15 year amort.
I have my initial 3k cash invested, plus 6k in repairs.
Appraised value: $105k.
What i think it will sell for right now in our market: $115k
I currently have a renter in it for $1100/month ($380/month cashflow)

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Exit 1: Sell the home in 5 years on the market.
Exit 2: Bring on a friend and cash out refinance into 30 year fixed.

Exit 3: Seller Finance.... So i really want to do something like this and want to know your thoughts.  I figure by year 5 my loan will be at $40k.  I can save my cashflow which will be $22800 and use it to pay off my lien alongside the buyers down payment.

Loan balance in 5 years: $40k

Cashflow saved in 5 years: $22k.

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Sale price $125k
Buyers down payment $10k
My interest rate: i am not sure
My Amortization: Not sure either
Prepayment penalty: maybe have this a high number to keep the buyer from refi'ing??

So I just want to know if it will be viable to seller finance this home, of course i will have to put some more cash into the deal to pay off my original loan.  But it shouldnt be a problem.