You can use anything you want for a lease agreement, but it's not wise.

Quote from @James Wise: Quote from @Theresa Harris: If they can't get it rented, it is sitting empty so what are they doing for repairs? 

Given both the prices and the political climate on the west coast, it seems the way to go.Nobody can tell you that everything is going to be OK, but seems like you are being wise. 

Although, after all is said and done tax-wise, gifts of $14k from each grandparent to each new owner (so 8 gifts per year in total, or $112k) would eat up the proceeds from the sale pretty quickly.

Problem is that his desire to move for school is a poor investment decision unless he can make a lateral move cost wise.

Is it ever wise to buy real estate cash and have no mortgage? 

Would it be wise to lower the price right before the open house?

According to some of the (albeit, limited) research I've done, it's not wise to assume that lenders will just automatically apply the excess towards principal.Good luck either way!

Definitely tread gently/lightly and strategically for all the wise considerations here2.)

A wise investor will not try to get rich quick with shortcuts.