Hi Holden,I would proceed with fining her, you have to follow through, but also look for a mutually beneficial way out for both of you.  

Appraisal came back at $359k, so the new, negotiated & signed agreement is for $359k with a $5k Seller assist.The mortgage processor just emailed me an "Escape Clause" to sign stating the following:"It is expressly agreed that, notwithstanding any other provisions of this contract, the purchaser shall not incur any penalty by forfeiture of earnest money or otherwise or be obligated to complete the purchase of the property described herein, if the contract purchase price or cost exceeds the reasonable value of the property established by the Department of Veterans Affairs.The purchaser shall, however, have the privilege and option of proceeding with the consummation of this contract without regard to the amount of the reasonable value established by the Department of Verterans Affairs."

I'm selling one of those 3 tomorrow and can just use the proceeds to pay off the mortgage on the third and pay off the mortgage - leaving me with 2 houses with no debt and about $200k in equity.Here's where my options get weird.I'm moving to Colorado (where real estate prices are hefty - The place I'm likely to get will be coincidentally around $200k.)

Once all intentions have been made clear and final on paper, then proceed with the purchase / rehab / sale of the house.

However I do not know how to proceed.

I need advice how to proceed:I am a new investor.We’ve purchased SFR last November. Now I am very actively looking for our first rental property-2 or 3 family. I am also trying to arrange financing ahead of time so ...

Proceed with caution here also.

Most of the answers above bash zestimates.  

He thinks he can convert to condos, then 1031 the proceeds from the individual condo sales. 

I'd like to use my share of the proceeds to jump into the real estate market in my area!