Rental income: Asked for 3400pm and had a few inquiries. 2 final one meeting the criteria have offered- 1. 3400 for one year lease and 2. For 3 years lease, yr1: 3400, yr2: 3550 & yr3: 3700. My all in expenses is 2900. Which one to accept and any counteroffer should I make? Thank you.

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Id take the 3 year lease. Long term stability is worth more than a few hundred bucks MAYBE if rent prices change.

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Why is the second one so anxious to lock in a longer term deal? I assume there’s no rent control, so $150 per year raises sound semi low. But a longer term lease is definitely tempting

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Depends on carry cost and projected local growth. If CC is high, the long term lease is favorable bc it guarantees no gap in lease for 3 years. If local rent projected growth is high, the ST lease is favorable bc you retain the option to jump rent.

All else equal, I’d offer 3400/3700/4000 on Deal 2. Even 1 month of being without a tenant would likely surpass potential increase in rent price on Deal 1.

SPM1, SC1: we don’t have any rental restrictions in the neighborhood. Total 5 of 42 are on rent. Barring one home (took them 4 months and rent drop from 3600 to 3150). Rest all haven’t seen vacant more than a month. In general max rent in area is 3800-4000 with extra 300-350 sq ft.

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