You're not obligated to take his solution.I would tell Title you expect your full EMD back. 

Market might be competitive but there is angles to stand out depending on what you are comfortable and able to handle, such as waiving an appraisal contingency, limitng inspection rights and time frames, closing time frames, allowing seller to stay-post closing, taking on difficult tenants, buying properties that might need repairs, etc.

Take back your control of the property; the tenant doesn't get to dictate terms.

@Clare Pitcher we do 12+ month leases to avoid vacancies Nov-Feb.If we take over an occupied property, evict or have tenancy-abandon a property, we first let the owner know finding a tenant will take longer than "normal".This opens up owners to understanding they may need to:1) Offer 3D tour and floor plans to stand out2) Price more aggressively or be prepared for aggressive price reductions3) Offer MoveIn Specials:- NOTE: we do NOT recommend offering a month of free rent that can be used at MoveIn.

It doesn't take long to learn how to spot a good deal.6.

Even if they don't pay the max, they will counter with what they will give you and you can take it or leave it.If you list too low, you may be leaving money on the table so let them counter.

Either way if the balance is 140k, without going through the short sale process (which will take a few months) no one can assure you of any approved sale price.

However, you can likely sell all the properties in the required timeline to do the 1031k, although that will take some effort/cooperation between multiple buyers/brokers, considering the separate markets.  

I do prefer having them take it to the bank tho.

Why take a larger risk when you are sitting great?