Newbie Question-How does a tenant affect a wholesale opportunity?

Question

Looking at my very first inquiry from my very first online ad (craigslist). The seller is "quietly" motivated and wants to sell a house that he rents out. it was his first house and now he has the property he lives in too. The 2 mortgages are affecting his credit and he wants to unload the first house.

In all my researching of wholesaling I've yet to find out how a tenant affects the transaction. Does it even make a difference if the property to be wholesaled is currently a rental?

Any direction for this would be greatly appreciated! Thanks!

Brent Coombs · Answer

This is the sort of situation where it would be best to ALREADY have your List of Buyers - not try to find them afterwards! Then you could ask them directly if being tenanted affects their willingness to buy, and whether they expect a discount (or are prepared to pay a premium) to inherit tenants.

You would then be in a better position to adjust your own Offer price accordingly.

Failing that, always assume the worst anyway, and explain to the Seller why you are fully justified in giving them a horribly low Offer. Cheers...

Barclay Hallowell · Answer

Thanks @Carolina E. That's a good point. All info I garner will help!

Carolina E. · Answer

@Barclay Hallowell I know wholesalers that do not like to deal with properties with tenants and I can understand why.  It can be difficult to get your buyers in to see the property and usually landlords that are motivated tend to have problem tenants.  The new buyer could possible have to deal with an eviction which is an added cost and time.