Tenants to pay all utilities.Estimated Taxes: $1,850/yr (on high end; could be closer to $1,400 on low end)Estimated Insurance: $700/yr Taxes + Insurance = $212.50/moOther ExpensesProperty Management (@10% only when rented): $130/mo-vacancy = $112/moVacancy Loss (@ 13.90%): $2,168/yr = $181/moThis is extremely high and could be unlikely, but according to a website I use for information on the area, it says this is the average for this area because of seasonality.

That is your warranty that if the market turns south, or if you paid too much, you can wait it out and not have to take a loss on your property.

It feel like it's slowly lifting some weight off my shoulders when I do, so I think psychologically its the much better way to go even if the math returns aren't optimized.

Instead of taking a like $30K loss we rented it out for a modest cashflow.

Your option or lease can't have rights to act as an owner, getting building permits, hiring contractors for repairs, insurance loss issues, evictions are more complicated, it really requires an owner who will assist if needed.

So we can phone the city every week and still get suck with it, or keep it in our name.We treat it as a pass through, no profit made, and accept a small loss.

In addition, the overall percent is not an asset level percent; it is the entire group the average (likely weighted).

There are some simple things you could do to minimize the loss of good potential applicants, but you've done most of the 'heavy lifting' by defining your screening process and asking the right questions prior to your applicant submitting the showing scheduling form.

That way you could have multiple exit strategies - flip or hold as a long-term rental.If this is buying retail and you have to exit via the investor market - you could be looking at a 20%+ loss to get out - even if repairs/updates add directly to the value.

I totally agree with @Thomas Guertin If you let him feel like he can push you around this time, he will just keep doing it. better to cut your losses and start over with your new and improved lease than to have a miserable situation in your home.Good luck and keep us posted.