If he didn't want it or can't afford it, I would have reward him with 60 days time to find another place, then find a new tenant that can pay what it is worth….  

Consider the risks vs the small reward...

People reward you with there appreciation and $$$$. 

Its a steep learning curve but very rewarding if you stick with it.

Never fully trust anyone that isn't willing to share the negative aspects of all this.As I'm sure you've experienced, this can be a very rewarding path to take and depending on your grit and determination, overcoming all the pitfalls are well worth the effort.Cheers and drive safe!

Though I would caution you on hard money lending until you understand the industry a bit better, that can be very rewarding but you have to be able to do your due diligence on deals because you're turning over your hard-earned money to an individuals project, often a flip. 

How do you balance the risks of holding during a market dip versus the rewards of appreciation?

Patience and discipline reaps its rewards. 

Its money well spent land development is high risk high reward.. depending on Jurisdiction. 

So you have to weight risk to reward.. and sometimes we have to eat one that we bought it happens..