Question about Purchasing with Existing Tenants and Strong Rental Prices

[John Kim]

Hey BP ,

I've been seeing numerous rental properties that appear lucrative at first glance due to their strong rental prices and existing tenants, presenting what seems like a promising investment opportunity. However, I'm curious about the underlying factors that make these properties available. If these places are generating positive cash flow, what potential red flags should an investor be on the lookout for?

Additionally, does anyone have strategies or advice on how to confirm that the reported rent is actually being collected as stated? Is there any information to tell if the seller is distressed due to the tenant? I'd appreciate insights on how to navigate this aspect.

Thank you in advance for your guidance!