There is no cost to you to do this.

The appraisal took 2-3 weeks to perform and the cost was just under $5k.

I was wondering anyone had any suggestions on ways to monetize those 2 acres without a huge up front cost?

And it could cost many, many thousands of dollars in legal to eventually win or lose.

Is there money in building and selling individual properties as GC if you factor in holding cost, etc?

DSCR rates (investor cashflow loans) would give you a fixed rate payment and allow you to pull that cash out from the rental at a lower cost.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620, many blemishes, but should have no evictions in last 2 years.

Short term rental with cost seg study/ accelerated depreciation to offset W2 income.

Nothing that cost money and has tax and legal implications should just be done on a whim. 

If you want to keep the deal together offer them a couple grand closing cost credit and if not find another buyer!