It still produces about $20k in cash flow after debt service at the new Buyer’s purchase price.So the question is how do you navigate this?

There's ways to navigate around lenders.

You want to be sure the lender you choose has successfully navigated them before.Can help you strategize the lending piece for this purchase AND purchases in the futureIs an investor themselvesBest of luck!

Barring that, I'll echo what everyone else said: you should screen them using the exact same criteria you used to screen your current tenant.

Are there restaurants and bars?

You could DIY the finishing (vanity, flooring, towel bar, painting, etc.) and save tons of cash.I considered doing this in one of my properties but the ceiling height is too low.

You need a good mortgage broker to navigate the correct waters for you to swim in.Stephanie 

Maria, if you'd like to talk to someone else in Houston who is newer to REI and navigated this, please reach out.

I get it....there's great restaurants, bars, specialty shops all within walking distances. 

Same here, tenant in Jacksonville hasn't paid me since September, hoping everyone posting is successful in navigating through this.