Analyzing Rental Purchase - What is OK to ask for before an offer

Analyzing Rental Purchase - What is OK to ask for before an offer

Member since 2018 · 7 posts · 2 votes

Pretty self explanatory subject.  What things can you (and should you) be asking the agent or owner of a property prior to deciding if you want to make an offer on a rental property?

Ask for the rents and terms of any current tenants?  To see the lease with the tenant?  Information on the tenant (I wouldn't want to touch a property with a tenant with a lease and lots of evictions, etc)  Age of big ticket items such as roof, appliances, HVAC, etc?

How much can you, and should you, find out before you even consider making an offer?  Obviously, I would need my own inspection of the property during due diligence.

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  • Member since 2018 · 2k+ posts · 1k+ votes
    7y

    @Chrissy Disch Are you looking at cash flow, equity or appreciation?  The perfect scenario would be all three. For cash flow, get the current rents and expenses and use the calculator here under the tools section or use the 1% rule. $1700 rent = purchase price $170000 less improvements needed. Until you have the cash flow you want there is no need to go further.  

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