Husband is willing to accept the $550K but IF it cannot be paid then a FORCED SALE OF THE HOME MUST HAPPEN.

A lot of accountants now say that it is perfectly fine as long as it is documented as an arms length business like transaction.  

This way they have a good cashflow, a lot of credit for capital gain due to capital improvement and a forced appreciation of your asset. 

It's hard to say Russell, because we don't have an arms-length arrangement when the buyer is representing himself/herself as agent. 

If I paid off the ARM, I would flip to black cash flow around $450 a month.

I say that because you may have different inspectors calling out different items at each inspection for instance you may do a rough electrical inspection with one inspector and do a final with a different inspector that see's things a little differently forcing you to redo work already inspected.

I also avoid contractors who have dedicated sales people who drive logo wrap vehicles.I tend to support diversity where contractors who were born outside of the United States or were Veterans in the Armed Forces have worked out best for us.What are your best practices for choosing contractors?

That type of thing and a $500 quote to replace a leaking irrigation valve that took me 4 minutes to fix forced me to throw my hands up and sell by owner. 

If you are ever forced to sell, or you end up with toxic tenants you might be finished.

It took a lot of Botox injections first.]If you’d like something to worry about for your circumstances - because all you have provided to us is: “The tenant broke the lease and moved out…” - consider this AZ law: https://www.azleg.gov/ars/33/01370.htmAn advice that probably does not need to be stated here, but still: Depending on the facts of your circumstances, I wouldn’t comment on whether you complied with this law, which I also assume is currently in force - this is a public forum, and you shouldn’t volunteer potentially-damaging information to the other side.And, again: None of the above is legal advice, as I am not a lawyer.