As for flipping or holding, consider that your flip profits could be taxed as regular income (check with your accountant on this before you make a decision) which can make a HUGE impact if you're in a higher tax bracket.

Make a good business decision and get him out. 

Okay Bigger Pockets Folks The time has come for me to make some decisions: My situation: I live in Sf Bay Area in California.

Here are couple different points I will consider before making the decision.1. 

@Davonta Williams Hi Davonta, did you make a decision?

I think you are right to a degree - things here in Las Vegas still seem like its a hot market however the houses appear to be sitting for a little longer than they were about 6 or 8 months ago - the correctly priced properties seem to be selling and the properties incorrectly priced, I think the average Home Buyer is saying "no way" to the high price and waiting for it to come down to a reasonable level 

We'd like to part ways with this tenant and make it an easy decision for them to leave.

Maybe they have run the numbers incorrectly but the numbers are very believable to me.

But I guess that's good learning for me and giving me an opportunity to explore the market better and be confident in my decision when the time comes.

This isn't to try and get one over on you, but I'd have to protect myself against the tough transition points between the surprises that they hadn't finished yet, or did incorrectly (not saying due to shotty work, it just happens sometimes), or any other things that I'd then be placing myself responsible for as the new license holder on the permit.