Another alternative, Fixed income RE funds, there are several out there but stick to the SEC registered funds that provide a guaranteed Annuities of 6 to 8%Your 401K could be rolled into a self directed IRA, and that would give you various investment options mentioned above.

If there is, or may soon be, a better alternative use of the money you have tied up in this property then you should sell and invest in that.

Your monthly payments are going to be higher with that little amount down, but if a good option for getting into a place if the alternative is waiting another year or two to buy.

. $84,000 in equity)I have my Hard Money setup for the cash offer at 1 point and 11%.My current thoughts were to present them with two offers1-$15,000 down and increase the purchase price by $3,000 while we pay their PITI payment monthly2-$84,000 (all equity) at the same purchase price as the cash offer and pay them monthly PITI with an extra $500We dont close till July 31st so I have a minute to come up with an alternate offer just trying to crunch numbers and see if it actually benefits me this time to seller finance the deal.

I would suggest taking into consideration what's laid out in this New York Times article, from a NYU professor, especially when investing in a college town with little to no alternative industry to support quality renters. https://nymag.com/intelligence...

They'll get you in a deal and then drag their feet until you get past the 45-day point, even if its a bad deal.7) Alternatively, if you are looking all over the place, you may want to call the local office of a national chain of brokers.  

I would highly recommend them as you vet alternatives...

Further, gold has hit multiple all time highs and continues to be more prone to a pull back than continued appreciation in the short term.I wont contest is value to diversify and hedge inflation, but it is not a great alternative for cash reserves in my opinion.

The rate you can offer is better than what he/she would get in an alternate investment. 

My multiunit is being fumigated and I am providing some money to the tenants for alternate housing.