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,
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.
@Sharad M. - it will be a cash purchase.
@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?
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Thanks for the reply Sharad M. and Raymond B.