We're getting slightly below market price but plan on increasing the rent some when we close.

It sounds like you understand how to analyze a deal, so I would run both deals and determine which is most attractive.

You sort out the math on all of that, take your cut(don't be greedy) and if it is attractive enough, you will have saved your cash buyer time and that is the value they expect from you.

l.. statistics show only increasing prices.

The Boston MFR market is just plain nuts and the same holds true for pretty much anything inside RT 128 and even out to many parts of the inside-495 belt.In general, you'll find property values increase the closer you get to Boston. 

In the last 5 years San Diego apartment rent has increased $540/month.  

The data that I pulled from MLS just a couple days ago shows that the average DOM has increased by about 1 month since I started keeping track of it earlier this year. 

We have good, not great credit, and a decent amount of savings that we're hoping to continue to increase.

With rates going up, my concern would be if they increase more before you rrefinance.

Account ClosedThis is a tough question to answer without knowing all the facts.Where is the foreign investor's home country.You may need to look at the treaty between the US and his country to see if there is any exception.You should also be aware that there may be increased withholding at closing because of dealing with a foreign investor.Furthermore, the income may be considered "effectively connected income" requiring w/h in behalf of the foreign party.