flip the house, but they are going to want to make a lot of money off the deal. If the house is worth $140k after $50k in repairs, I'd bet they will offer much lower than $90k for the house to make it worth their time.

After you figure the tenant thing out, I would look into doing the minimum work needed to sell it yourself. Paint and carpet are cheap, and you can put in cheap countertops. Appliances can often be fixed for little money if that is an option. Spend a weekend or two in the backyard hacking down weeds and pruning branches.

You may come out ahead if you can put $15k in to the house and still sell it for $125-130k. Doesn't sound like it's in a high end neighborhood, no need to go all out in a remodel.