I’ve seen many a deal that came to us because the bank couldn’t get comfortable with the lease up period on a new project and the borrower lost months having to start over with another bank.

Do I as a seller have any option at this point, or do I have no choice but to sign the letter and release the earnest money to the buyer?

You might have no choice but to pay extra.

The problem I keep coming back to in my mind is the choice between holding rental properties, and flipping.

However, I am currently very torn by my current choices that I foresee.

But trying to decide what’s the better choice initially for my first real estate purchase.

Rather than presenting it as 'we need to borrow money' present it as 'we have an investment opportunity for you'.   

I looked at the property and said to myself “you own this now, the only choice you have is to make the best of it.”

Always use a warranty deed to avoid any issues with the tittle insurance when transferring tittle.Also, Ive recently learned Fannie Mae allows transfer of tittle to an LLC without accelerating the note...Fannie updated their servicing guide to state:Unless the previous borrower requests a release of liability, the servicer must process the following exempt transactions without reviewing or approving the terms of the transfer:· A transfer of the property to a limited liability company (LLC), provided that § the mortgage loan was purchased or securitized by Fannie Mae on or after June 1, 2016, and the LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence).

Fact be told using a LLC is the choice of only about 50% of income property investors.