Try and get the tenant to leave and return possession willingly, signing off on a lease termination.

The risks for the seller in #1 are buyer default, the costs of foreclosure (or deed-in-lieu, if that makes sense), and, if the property ultimately becomes yours again through the foreclosure process, the costs of obtaining possession plus any damage to the asset.

I would just let them out of the Agreement, charging for every day of occupancy, and cleaning/damages based on conditions found after they turn over the keys and possession.

They handled the paperwork IAW the local and state laws, took the tenant to court, and eventually retook possession of the unit.

Alex N.AP is Adverse Possession. 

When I took possession of the property, I invested $45,000 in a tiny house, septic, electric and city water.

If they request a Payment Plan, we require it to be in writing, with specific dates & amounts, with income documentation to support the payments.If tenant appears to no longer occupy property, we cautiously proceed to secure the property and move their possessions to garage, basement etc.

But does anyone have guidance for how to analyze a rental property that you already possess or have inherited, to determine how much sense it makes to hold on to it, vs. trying to sell it? 

She had a toddler and we advertised her apt.A candidate came who had a really good FICO score (720), but owned a tattoo parlor, so his income was all cash.His GF had W2 income that was just short on qualifying and also had a good FICO score.He also disclosed that he had a felony for MJ possession 25 years ago when it was very illegal to even carry it.He's been clean since.

Hey @Chris Virgil-StoneEven though this will be your first flip, try your best to frame your experience in a way that is condusive to showing that you possess the necessary skill set to take on whatever project it is that you'll be taking on.You may not have a ton of flips under your belt, but it sounds like you have some relevant experience that you should be sure to highlight.