Should I buy multi home that already has tenants?

Question

Hi All,

I am looking into investing  in triplex that is fully rented out. The listing agent states that the 2 units have been occupied for 3 years and are on month to month lease and one was recently leased for a year. The agent states that the tenants are great and have been paying on time.

How do I verify if the information provided by the agent is accurate? I'd like to do my due diligence on the tenants to make I am comfortable and know all the facts and not depend on the listing agents information.  I haven't made an offer on the house and would hesitate to put in one until I have reliable information on the tenants

Any advise is appreciated

Dave Savage · Answer

@Aniket Thakur  Make a rent roll from the last 6 months a condition of contract which will show you whether rents are coming in or not.

Beyond that, there is little you can do, but if the rents are falsified on the rent rolls and you have an issue you could have cause for remediation from the seller.

Also make sure the rents that are being stated are in line with rents in that area - check rentometer, craigslist, or call possible PM companies.

Aniket Thakur · Answer

thanks Carlos and Dave. I have requested the listing agent for rent roll and maintenance records

I am hoping to have these before signing the contract

Carlos Asuaje · Answer

Pretty much exactly what Dave said. I recently purchased a fully occupied duplex, but I put a contingency on the contract that said the seller had to provide rent reports and expenses for the past two years.

-Carlos