I own one rental that was my first home. Renters are a curious lot. You have now way of knowing how this person will treat your property. It's funny how people care for things they do not own. The fact that this person bought a 300K home on a 55K income speaks volumes about his fiscal responsibility. I have a 160K home (cost to build on land I owned free and clear) my combined family income is close to twice what his is and I would never have tried for a 300K loan and certainly not an ARM.
Repairs will be your responsibility and as always Renters want it fixed NOW. There will be furnace and hot water heater repairs, Roofs and driveways that need upkeep. Not to mention that 5 to 10 years from now when he moves out the house will need complete renovation to be rented again or put on the market.
Last but not least is NEVER RENT TO FRIENDS OR FAMILY. YOU WILL GET BURNED
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