Before making any decision, I would get a customized property evaluation by a local Realtor to determine the value of the property on both sides of the spectrum; sale OR rental. 

Sale your current house.  

Ensure the state provides a clear title upon sale.

Then, gather evidence like recent sales of comparable properties to support your case.

If not then sale.  

And that’s if you can’t find something to buy for under $100k or time multiple sales at once. 

If they’re late a third time, you have a strong case for eviction for habitual non-payment—without risking the tenant showing up at the 11th hour with the money.For your specific circumstances, with only a partial month behind, I would guess there is a decent chance they can come even on rent and it would be a waste of your time.

Purchase price: $125,000 Cash invested: $75,000 Sale price: $248,000 Decent fix and flip completed in 2024.

Retail sales so far are +.7% MoM and +3.8% YoY.

And other questionsIf I was reviewing this for one of the investors that buys SubTo deals from me, I'd want to renegotiate the down, remove the balloon, make sure my investor has 6 months of payments in reserves, make sure my investor can qualify for a refinance in the even the Due on Sale got called.I would need more answers to know if I would do the deal.