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Home > Help... I need to make a decision today!

Help... I need to make a decision today!

June 25th, 2012 at 08:22 pm

Brief recap:

-House for sale for 4 years now
-Finally decide to put it up for rent a month ago
-Got an offer to rent it for $1300 a month for 2 years (doesn't cover all the mortgage on the house but it's much better than nothing!)
-Need to firm up this lease agreement offer TODAY

So, we were all set to go on this thing but then our realtor just let us know that he has been in talks with a family out in Arizona (we are in the Southeast). The lady has just accepted a job here at the local University and they are heading up here to look at rental houses on July 4. He said that they loved our house based on the pictures and the conversations they have had with him. If they like the house once they see it, they will give $1500 a month for a one year lease.

These $1300 people want to lock in today so I don't have the luxury of waiting for the Arizona people in the case that I would lose the $1300 offer.

So, should I take the safe bet and just lease the house to the family first in line at $1300 for 2 years? Or should I take the riskier bet and wait a week and a half so that the Arizona people can come up and look at the place. If they like it, we'll get $1500 a month for a year. If they don't like it and don't want to rent it, we may or may not have the $1300 offer on the table any longer.

**At $1300 a month for 24 months, we are looking at a loss of around $9500 over the two years considering mortgage and insurance.
**At $1500 a month for 12 months, we are looking at a loss of around $2600 over the one year considering mortgage and insurance.

I have a feeling I know the answer but thought I would throw the question out to you guys anyway... ((Oh, and the $1300 a month people will have a dog with them -- a lab, but I'm not charging them anymore for having a pet.))

Posted in GOALS | 5 Comments »

5 Responses to “Help... I need to make a decision today!”

  1. creditcardfree Says:
    June 25th, 2012 at 08:44 pm 1340657078
    1340657078

    Ugh! I don't know how to answer. I feel your dilema.

    Did you do a credit/background check on the $1300 renters? If they are a go from that end, I'd probably take it. It's a sure thing for two years. If the credit has not been checked...then you need to do that before you sign them on.

    The other rental is only a sure thing for one year. Either one is better than paying two full mortgage payments for an unknown period of time.

  2. patientsaver Says:
    June 26th, 2012 at 12:54 am 1340672044
    1340672044

    You've been waiting 4 years for this. i'd go for the sure thing. Who knows what the other people might find fault with when they see it in person. I would not hold out for them.

  3. wowitsawonderfullife Says:
    June 26th, 2012 at 01:25 am 1340673926
    1340673926

    I'd take the first opportunity that is solid. So accept the 1,300 for 2 years contingent on a reference check!

  4. CB in the City Says:
    June 26th, 2012 at 02:09 pm 1340719746
    1340719746

    "A bird in the hand is worth two in the bush" -- Chinese proverb (?)

  5. Jerry Says:
    August 12th, 2012 at 05:03 pm 1344791018
    1344791018

    I was thinking about you and your predicament with the renters this week because we are losing one of our two renters, she just told us that she is leaving and it leads to some stress because we are overseas and moving at the moment. Kind of frustrating. Fortunately, the remaining tenant is excellent and we have the insurance of some other people already wanting to look at it, but wow is it stressful! I feel for you, for real...
    Jerry

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