Johnstown, PA · Member since 2017 · 15 posts · 0 votes
Is this a good idea to purchase a double house with someone already renting out one side? I'm ready to buy my first property, and I really like this place; however, being new to this i don't know if it's a good idea to buy it with someone already living there. What do you think? Also, they're paying 100 dollars less then the average rent for that neighborhood and type.
Cincinnati, OH · Member since 2015 · 81 posts · 24 votes
9y
I found that people on BP are surprisingly split on this topic. Taking on old tenants can be hard, because there's a possibility they aren't "trained" right. You don't want to take on bad tenants. I have to say, i would put them through my own tenant screening process, and make sure that they are quality tenants. I would also try to find some kind of reason to raise rental prices, if possible. Something that would benefit both you and the tenant. I wouldn't want to be the grumpy landlord that just comes in and raises prices. That's just my personal opinion. I don't own a multi-family yet so maybe that will change, but that's what I think I would do.
Investor · Allentown, PA · Member since 2015 · 101 posts · 69 votes
9y
Its's kind of difficult to buy a good multi-family without people in them (one would have to question why it's empty). I do it all of the time. In this case, it should be easy since there is only 1 tenant to assess. What I would do is, if it is known to the tenant that the the building is for sale (so you don't ruffle any feathers...although I do this no matter what as part of my due diligence on the subject property), go interview the tenant about the state of the property, the neighborhood, the landlord...what they like, what they don't like, what changes they would like to see, ect. Not only will you get good boots on the ground insight about your investment, but if they are toxic tenants, you'll know very quickly by the way they handle the interview. Also, it tends to create instant good will that you care enough to ask their opinion.
Cincinnati, OH · Member since 2015 · 81 posts · 24 votes
9y
I found that people on BP are surprisingly split on this topic. Taking on old tenants can be hard, because there's a possibility they aren't "trained" right. You don't want to take on bad tenants. I have to say, i would put them through my own tenant screening process, and make sure that they are quality tenants. I would also try to find some kind of reason to raise rental prices, if possible. Something that would benefit both you and the tenant. I wouldn't want to be the grumpy landlord that just comes in and raises prices. That's just my personal opinion. I don't own a multi-family yet so maybe that will change, but that's what I think I would do.
Investor · Jacksonville, FL · Member since 2014 · 186 posts · 34 votes
9y
+2 on the buy it anyway, but run your own background/credit check. Make sure they are paying on time and properly, then assess from that point on. If worse comes to worse, you feel they aren't working out as a tenant, then you can always not renew the lease.