There is a Bigger Pockets article that just came out weighing the pros and cons of debt purchases vs all cash purchases.

With a reliable tenant pool, stable rent, and high demand, the plusses far outweigh the minuses in most cases.

I would see if the rent would outweigh the expenses to hold it and go that rout before losing so much money.

It will only get worse.Yes, this sounds cold but I have done both option 1 and option 2... and the good feelings from option 1 does not outweigh the suck of having an entire year of cashflow disappear.

The annual gain in rent outweighs the overall loss in increased interest over the life of the loan. 

You can imagine how your net profits in a multiple offer situation will outweigh what this one buyer will net you, right?

There are profit options in SD that FAR outweigh what could be done with a personal track. 

I think the risks are outweighed by the rewards though.

@Ashish Acharya , the ability to create even a small amount of future self employment income to have a Solo 401k is important when rolling over old 401ks and existing IRAs into a Solo 401k.The advantages of a Solo401k compared to an IRA  far outweigh any self employment tax.

It's likely that your interest earned won't outweigh the interest expense.