Assuming or buying fully rented properties

3 Replies

Hello, all

I am a new investor and I have recently seen a listing from another investor who seems to be selling a lot of properties in some of my areas of interest. In the overview, they let you know these are not distressed properties and they promote all properties are immediate cash flowing. There is one "package" that includes 2 long-term & fully rented duplexes that are side by side & each unit have rents at $950 each. In the package, they include a SFH that currently rents for $1150/month. All properties have already been renovated and rent/lease contracts are current and expire in the summer of 2016. The potential short term & long term income from the rents would greatly be welcomed in addition to having potential flips for next year at the earliest! I would not want to wholesale this deal to someone else if possible, but that is an option if I cannot make this deal work for myself.

Since the listing says assuming this package is possible, should I look into assuming this package or do I have better alternatives I should consider looking into.   I am excited about the potential income but, I don't want to walk into something that is too good to be true!  Should I jump in or wade in??

Yes ask them about assuming the deal, then have a RE attorney look over the deal to make sure that there are no booby traps.  Also verify the leases and that all renter are current. 

@Charles Tucker

I do like purchasing immediate cash flow properties..... But inherited some terrible tenants as well. Meet them take a look at their lease agreement and ask for verification that rent is paid on time. If the prices are great and the rent is great, hopefully you can jump on the deal. Have you been pre-qualified?