You could offer them 1/2 or whatever ratio you feel is fair given the circumstances and they can write you a check for that amount to walk away.Another thought, if there is a way you can find out where they are moving, a forwarding address etc, I'd reach out to that new LL or owner and explain the situation to them, I have a feeling the tenant didn't disclose that they have an existing lease as a liability in their financials when the applied, and there may be some application fraud etc at play here that the new LL would likely want to know.Think about this from your own point of view, I doubt if you picked up and left one of your subway locations that the the LL would just let you leave.  

We are located in the Niagara Region of Ontario Canada, and we have a good track record for buying distressed and quick closing deals.   

@Frank James BatignaniAs @Nicholas L. so succinctly put it -- you should consider house-hacking.Not sure where you're located, but in Denver and Colorado Springs here, you can get $800-$1000/room.

@Sumit KaulRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.When investing in areas they don’t really know, investors should research the different property Class submarkets.

Location, location, location.

Hey Michael- in your prior post you noted being able to put less down on the home as a down payment when asked why the PHA program was of interest.

So you need to check for your own area where proprty is located. we are  following this  California Tax exemption rule"Rule 131.

Exit strategy; 2. location research; and 3. financial assessment4.

Rushing and buying a property for 200k, chasing rents, dealing with evictions, constant repairs, and seeing baby appreciation over the years is not the best moveSaving up a bit more, buying in a more solid location that has higher quality tenants and larger room for appreciation will usually play out better for you in the long run. 

Price and location.