Here are some general guidelines: Lien Position1st Position LienEquityMinimum Down Payment of 20-25% (a 30% equity to sale price is preferred)Down Payment made in certified funds and not borrowedMaximum Funding of 70% ITV (Investment to Value)SeasoningMinimum of two monthly payments already made12 months or more preferredPayer CreditCredit Score of 650 or higherNo major derogatory trade lines (No 90-180+ days delinquent, foreclosure, repossession, bankruptcy, etc.)No decline in credit since purchase of businessTermsPrefer 60 months or lessMaximum of 72 monthsNo Balloon Payment preferredCash FlowBusiness has positive cash flow1.25 debt service coverage ratio preferred.DocumentationPersonal guarantee from a creditworthy individualStandard documents including Note, Security Agreement, and UCC-1 filing.Tax Returns on the business that substantiate profit and loss statements.OtherPayment history current and verifiablePayer Interview indicating buyer is satisfied with business and comfortable making paymentsMotivation for selling the note is not a result of a deteriorating businessConsideration of high risk businesses or geographic areasIn these situations, sometimes a partial is a better option. 

One long-shot option is to offer a lease at something like $1,300. 

Another option would be to sell, reinvest into a house hack and use the excess on a deal.

All things being equal, a simpler option would be to terminate the lease with a penalty of one month's rent, agreed to in writing.

If you had no knowledge and they broke the lease I'd issue a notice of non renewal, but give them the option to remove the cats.

These are the options we are trying to decide between… thank you in advance!

Also, within this approach, the option that attracts me the most is purchasing and installing a 'tiny home' on a campground that allows it.

For example, I will send a tenant the lease renewal options and give them one week to respond.

At this stage, you can also discuss creative financing options, like seller financing, that might help bridge the gap between what you can afford and what they’d like to get for the property.

And sounds like a good set of options you are looking at.Here's some data and visualization on recent trends in some of the markets mentioned here.