So my prospective tenant can't afford the security deposit??

[Jake Recz]

Hey guys it's been a while... I'm renting out an apartment. I listed it on craigslist and got "the usual". Some good applicants, some bad applicants. Some dreamers with no income, unable to verify income, past evictions etc Like I said, pretty much "the usual". 

Long story short, out of all the people, I picked out a tenant. Good credit (~730 range). Income is double the rent amount. The other person on the lease is also employed, and the third person on the lease is also employed. Financials look good overall. I call him, offer him the apartment, he's happy, I'm happy and we talk about signing the lease. So far so good, right? Everything is going smooth. We talk a few hours later after he consults with his significant other and BAM, now the prospective tenant asks me IF he can pay the deposit on lease signing, and pay me the first months rent on the day of the move in (2 week window between the two dates). Red flag! At least to me. His reasoning for the question is that he's renting another place that he's paying for and I assume that he doesn't have enough to cover the deposit and the first month, as he didn't receive the deposit from the other place back yet. I tell him I will get back to him, and here I am asking you for your opinion. What would you do? 

My reasoning? Red flag. I'm ready to back out and go to my next pick. The rent is $1,600 a month. The deposit is $1,600 a month. $3,200 total to move in. I feel like I'm being tested here. If i budge now, a few months down the road I'm gonna be asked to accept partial rent, then its gonna be late, then he won't pay, after that I'm gonna be going through a costly eviction. What if the tenant loses his job? He won't have the money to pay. I expect people to have a little savings and be ready to job loss. Emergency fund, you know? Oh, and he asked me if he's approved already. I told him he is... but I'll get back to him. No paperwork has been signed yet.

So from your experience, what would you do? Am I going crazy here over nothing, or what? 

Thank you in advance!