Below market rents in the age of covid-19: NO SECURITY DEPOSIT

[Meg K.]

Hello,

I made an offer on a duplex: asking $67777. Offered $60K. They countered with 65K. I am ok with that.  However, the tenant who is currently in the 3/1 is paying $600 and is on M2M. This could rent for $925/mo! There is also no security deposit per owner.  Upstairs is 2/1 and is currently empty.  Could rent for $775/mo.  I would estimate (before inspection) cosmetic upgrades $10k. Should i proceed? How do you handle the long term month to month below market paying tenant? What about lack of security deposit?

THANK YOU!