You could offer them 1/2 or whatever ratio you feel is fair given the circumstances and they can write you a check for that amount to walk away.Another thought, if there is a way you can find out where they are moving, a forwarding address etc, I'd reach out to that new LL or owner and explain the situation to them, I have a feeling the tenant didn't disclose that they have an existing lease as a liability in their financials when the applied, and there may be some application fraud etc at play here that the new LL would likely want to know.Think about this from your own point of view, I doubt if you picked up and left one of your subway locations that the the LL would just let you leave.  

@Matt Harris I know the feeling.

My loan feel through because I didn't have enough time in the army to use the VA loan and I was counting on it the whole time so since that feel through I hade to go the FHA rout witch increased my interest rate 1.3 percent and on top of that I now have to pay PMI and if I had been planning more than one loan in the begging I would have been prepared Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

In the other hand, we do not feel comfortable buying this home anymore, our goal is to back out without paying a penalty of 2% of the sale price, and of course they are going to try and fight that expense.

Sell it...based on your post if you rent this I can almost 100% guarantee you will feel angst and concern with every tenant.

I think the best way to overcome analysis paralysis is to align yourself with an agent you like and trust and who is well-connected so you feel confident you'll have the support you need to close the deal and get off to a good start. 

Thanks  Feel free to reach out when you get a deal and close, you are months away. 

Check various reviews or get some expert opinions to get a feel on the life of some of these !!!

If you every need anything or have any questions, feel free to connect with me.

Feel free to inquire about their staff qualifications if it's a larger organization.2.