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You own a rental property and a stranger has offered to pay you to rent the property for the next 5 years. The stranger says
- You own a rental property and a stranger has offered to pay you to rent the property for the next 5 years. The stranger says he will pay $12,000 per year at the end of each year for 5 years or will give you $55,000 at the beginning of the lease. If you can earn 5.00% elsewhere, which one should you choose?
- Take the money up front
- Take the annual payments
- Dont lease the property to a stranger
- There is no economic difference between the two choices
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