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Updated about 7 years ago on . Most recent reply

Should I buy this tenant-occupied SFR?
Most Popular Reply

Christian,
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.
Good Luck!
Chris