Submitted my post under wrong category...
First, I just joined 10 mins. ago. But I've been browsing through this site from quite some time. I'm hoping to gain valuable knowledge... for that thanks in advance.
I am in the process of acquiring my very first rental property. Have zoomed in at a couple that fit the profile and financial performance. However, in the process I came across a tenant-occ. S.F.H; send a few questions (through my Realtor) to the seller and things are not looking that bad.
The property is being sold somewhat below the average $ in that area (not sure if this is already a red flag), yet the rent disclosed in the posting is actually up to date with area rents. However, an answer to a Q? in particular made me somewhat uneasy and reconsider the temptation to jump into a cash flowing property.
Question I asked: Does the tenant know the property is up for sale? Answer: NO
Seller will not show unless an purchase offer is in. According to seller tenant has been renting 1.5 yrs, property has been on the market for 8 months. Is it normal for these type of properties to stay on the market that long?
Is it common for a seller not to disclose to a tenant the property they are living will be up for sale?
I would like to request an estoppel agreement be filled out and returned to me. When should I do that? Is there a specific protocol to make such a request? Will an estoppel agreement help cut through the chase and put the ball on the seller / tenant's side?
All feedback is greatly appreciated.
Pablo, the rookie.
Its not necessarily a red flag that the tenant does not know. If a landlord tells a tenant they are listing the property, it is likely the tenant will move out. Turnover costs a landlord money.
Make the estoppel a condition that must be completed during the option period. Considering you haven't seen the inside or talked with tenant, I'd put a healthy option period on it.
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