My wife and I do this exercise every year.

This exercise will help you establish which of the two properties best aligns with your long term goals.

This is especially important if you're on the younger side, as those returns can compound significantly over the next few decades.I'm in a small real estate mastermind group, and we all did this exercise with our own portfolios and identified underperforming properties and equity to reposition, and presented it the group for feedback.

However, for the purpose of a healthy and helpful discussion, I invite you to the the do the following exercise to get the facts first:1.

Plus it's a great exercise to ensure you understand each step of the deal, and if there's anything you're missing--something new to learn as well!

The tenant-buyer has time to fix their credit and save more money for a down payment during the option period, then exercises their option - fulfilling their desire for home ownership.

Of course I was aware there was no curb and gutter at time of purchase and that there was an easement in place, and which hadn't been exercised since year the properties construction in year 1960. 

Hope this exercise illustrates the fact the BRRRR and cash flow are not always indicators of success and far less time could have been invested to achieve a more favorable result by purchasing in Market A at the start.

With loan extension you might have to come up with extra payment to get DSCR in range lender will approve.That is why to go through this exercise NOW and if you know tenant wants 300k TI to extend and bank wants 300k to pay down estimated balance when new loan placed you need 600k to come up with.

The rest of the day will be seen as Benchmarking exercises: beaches and good food!