I suggest asking for proof that they've been paying their rent on time and for a full accounting of all expenses at the property. If they have been paying their rent, and there aren't any expenses related to poor upkeep of the home on the tenants part, then I wouldn't be too worried. You also should do your own due diligence on them (background screening, calling past landlords, etc.).
Joe, great ideas. I’ll definitely be asking for all of that. Thank you!
Sounds like a good deal to me. You need to get a copy of that lease. Does it give you an out to raise the rent when the property changes owners? Many leases have language that make allow them to expire if the property transfers. If not, it might be worth working through your realtor to have the current landlord update the lease to make these changes (he can give the renter a free month to sweeten the deal if needed).
If you can't get a lease that allows you to raise the rent when you take over, you'll need to price this 1 year loss of rental income into the purchase price and just wait it out.
I wouldn't worry about a tenant being there. This happens all the time, risk we all take.
Get a esstopal letter, copy of the lease and all back ground info on the tenant. Do not expect them to be perfect tenants.
Moving forward as a investor you always prepare for a eviction. To not do so is reckless on the part of any investor. Assuming all is roses and being nice will resolve all issues is not rational.
Always keep in mind you are operating a business and all decisions should be made from that perspective. Yes you are being paranoid. That is a emotional reaction, no place in business for emotions.
I love that. When I asked my agent if there was anything we could with the current lease she said “no, sorry.” But I’ll be sure to look into this, thanks!
You’re right. Thanks for helping me snap out of it haha. I’ll definitely apply that mentality moving forward.
Thank you, gentlemen!
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