All Forum Posts by: D D

I have not screened them yet but I will certainly will even if they are a retired couple haha. I just wanted to see what everyones' opinions are of an upfront all cash offer and what advantages/disadvantages I should be aware of. Looks like most are in favor if the tenant passes the screening process.

Thanks everyone.

Right. There is a mortgage on the house that will need to be paid so the $7k will be used towards that.

I thought about refinancing since my rate is 5.75% now, however, since it is considered an investment I probably won't find much lower than that.

All good points. I have another party that is going through the evaluation process but it is not an ideal situation so cash does sound better.

Thanks for the input!

Excellent point. Obviously this is not an optimal rental but I think it would be a great learning experience before taking the dive.

As far as the accounting aspects, I had another investor advise me to take the cash but claim the property as not being rented for the 6 months. That sounds terrific but I am wondering how you account for the $7k cash that just appeared in the bank. I suppose it's ok unless you get audited.

I bought the house 6 years ago for 173k and owe $149k now. As an agent the comps I pull for the house are around 163k so I would like to hold it if I can.

I am trying to find the advantage of a low cash offer as opposed to a respectable month-to-month payment offer.

So I am renting out my first property in Phoenix. It is a house I lived in for 6 years so after my wife and I were just married we naturally bought another home. The mortage and impounds come to $1175/month and the area comps for the home are between $1250-$1350. I am asking $1300/month and receiving on average 1.5 contacts per day for the past 2 weeks although I have only had one applicant. . . until yesterday.

An older retired gentlemen and his wife made a CASH offer of $7k up front for 6 months. That comes out to $1166/month which will obviously incur a loss since that will not even pay for the mortgage. However, it is a cash offer which has some incentive but that is where it gets cloudy as a beginner investor.

Should I even consider this offer?

Having the cash up front would be nice so I won't have to worry about tenants making rent for 6 months, but I will incur a loss. So what advantages and disadvantages should I be considering with this proposition? Thanks!

No it's much further North. Still not an area I would be but I have spoken to a couple of the neighbors who have lived there for 10-20 years and they said it has always been quiet.

Thanks Richard. The rent is actually higher so I should be ok. Now I just have to endure the short sale process and hope for the best.