Thanks for your kindness to Newbies like me. I'm brand new to investment properties. Looking at several MF units in our area (MA). I'm wondering about buying with existing tenants. What kind of things can you do to make sure the owner isn't selling due to tenants that aren't paying? Especially right now, when evictions are not easy. I feel bad even asking that, as I understand this is a hard time for lots of people. But for our very first property, I don't want to find myself stuck in a bad situation that I can't get out of. Obviously if they are good tenants, I want to keep them if possible.
Investor · Member since 2019 · 25 posts · 24 votes
6y
You can ask anything you want and you should. Feel comfortable about the deal. Don't worry about asking something you can't, the worst that happens is the seller walks away and that tells you more than you need to know right there. Things I ask:
- Rent roll for past few years depending on how long they've owned it for each unit/property in the deal. I like 3 yrs for no particular reason - someone else might have a more scientific number.
- P&L for the property to help me evaluate maintenance, top line revenue, bottom line, and category break down.
- Copy of existing leases and if there are any special circumstances or arrangements
- If it's a deal where I'm talking to the owner directly I'll chat them up about the tenants without any specific questions but just to see what they
Rental Property Investor · Minneapolis, MN · Member since 2020 · 540 posts · 285 votes
6y
@Jason Poquette
Definitely ask the current owner for any and all records they have, which should include all payment receipts so you could probably figure out what days the checks were cashed if you care to look that hard.