Looking to buy first rental

5 Replies

Greetings BP members,

I was recently contacted by someone who is looking to sell two properties. Both are occupied and are managed by a PM. I'm considering buying one of the properties because the tenant has been in place for 14 years and is not looking to move. Additionally, the asking price for the property is only 25K. My question is, what are the steps I need to take to make this a smooth transistion? Moreover, is it possible that the current owner's contract with the PM could survive the property's transfer of owenrship to me?

Thanks in advance,

Eric

My question is, what are the steps I need to take to make this a smooth transistion?

@Eric Johnson Are you purchasing this cash, bank loan or owner financing?

Moreover, is it possible that the current owner's contract with the PM could survive the property's transfer of owenrship to me?

PM agreement will end with the sale, but the leases will survive the terms.

Promotion
Roofstock
Buy & sell single-family rentals online
Radically accessible real estate investing
Get access to exclusive property listings, proprietary data, and support to build your portfolio.
Learn More

@Eric Johnson These are the things I will look for:

1) Since the tenant has been there for 14 years, there will be some deferred maintenance needed for the property. Anytime I purchase a property that's already rented, I run my numbers assuming that the tenant will move out the day I purchase, so I always factor in the amount I will need to spend to get the property move in ready.

2) Why is the seller looking to sell the place?

3) How much is the place rented for?

4) How long has the property been up for sale?

5) Is there security deposit from the tenant?

6) Is the tenant current with rent? If not, how much behind?

@Eric Johnson ,

To make the @ work, do the following:

Hold down the shift key and type @?

Look below this Window, and you will see a list of names of people that have posted in this thread.

Click on the name of the person that you want notified via an email, that you responded to them.

If you are a Colleague with anyone that has NOT posted in the thread, and you want them to see your post, hold down the shift key, type the @ and the first 4 letters of their First or Last Name.

Then look below this Window and click on that person's name.

Raymond