Tenant Screening Basic Question

[Jarrett Atkinson]

Hello Everyone,

I have recently purchased my first investment property; a duplex in southeast Michigan. There is one unit occupied as of purchase and the search for the second unit tenant has been off to a rocky start. Its been 2 weeks now and I am yet to find a tenant that fits my criteria that I didnt think was that strict; 600+ credit score and 3x monthly rent in income.

I would describe the property as "B-B+" neighborhood. Harrison township for anyone familiar. It is near the water for whatever thats worht. I am asking $1200 for monthly rent.

So far Ive had LOTS of applications. Good income with bad credit, good credit with bad income, borderline credit and borderline income, and my personal pick for most unique: very bad credit (prior evictions), good income, and an offer to pay 2month security deposit and a month to month lease at $1400.

My specific question is At what point do I revise my criteria just to get the unit occupied? I am getting exactly $0 from the unit now and beggars can't be choosers.

I am also aware that my lack of experience can hurt me. Am I being naive, or how can that offer with the troubled credit paying over market and 2x security deposit burn me? I know evictions objectively suck, but with a month to month lease and the extra funds, can it still be extensively painful? I will go with a more qualified tenant if they exist, but I have seriously considered this offer and asked for opinions on it from anyone willing to offer one.

A little more context; I'm losing approx $200 a month with one unit unoccupied and dont have any immediate cash flow problems. I have excess reserves and no large expenses, I just want to ensure I'm doing this right. If im waiting around for a tenant that doesnt exist, the sooner I realize this the better.