Aligned with all the other open listing in MLSPosted in Craigslist, MLS (Zillow etc)Response:  Lots of calls but 3-4 applications so far all with major red flags (evictions, etc)My Thoughts:1) Reduce 50-100$ to see if we get a decent application - Part of me also tells that, if it wasn't priced right, I wouldn't have got so many inquiries and other part says - Reducing 50 is not a bad strategy as it would keep the property occupied. 

Combine that with the owner clearly not wanting to give the property up (divorce), and the strange, long term leaseback contingency, I can say that my hunch is strong and the red flags raised high.Someone might want to take on the problem, but with a current tenant upstairs paying 40% below market rate, and the current owner possibly renegging on their agreement without repercussion other than a formal eviction, I can say it's not a risk I was willing to take.

It doesn't sound like mortgage rates will really help us on any sort of refinance unless we do a major rehab project.I guess the biggest factor for me, and this should be a red flag, is that I have an emotional attachment to the Austin house. 

No vicious breeds - check with your insurance carrier.

@Priyanshu Adathakkar is correct for the most part but there are huge red flags that you should consider before going into a LOI.1.

Most people now have home offices, used to be a red flag for IRS if people claimed that deduction, but not so much anymore. as long as everything is recorded and kept track of, i can not see why you couldn't deduct those expenses as long as they relate to the business.

If you're saying that mostly section 8 people are applying then thats a red flag.

He stated a few things that came off as red flags for me.

I don't know if Cozy will red flag a deposit and hold up rents because your name changed or if the bank would hold up payments for that.

@Virginia Reasor One could write an entire blog post on the red flags from your post.