Buying a vacated property for first rental?

[Tim Lyons]

Should a first time buyer always aim to start cash flowing immediately, as in buying a property that already has tenants, or should a couple months downtime to clean things up and find tenants not be a deal-breaker?

Keep in mind I will be financing, so each month of downtime will be a black hole sucking cash from my bank account.

[Matt Jones]

I actually prefer to buy vacant and budget for repairs and initial vacancy. It allows me to buy properties in any condition, get them into top notch shape and then find a quality tenant to put on a long term lease. I’m about to close on an occupied 4plex and I’m much more apprehensive about inheriting problem tenants than I would be having to fill the units.