Purchasing with existing late-pay tenants

2 Replies

Hello All - First time posting, been listening to the podcasts and reading the forums religiously since the beginning of the year. I am considering buying my first out of state rental property in Indiana with existing tenants. Aside from the first month, the existing tenant has made payment 15-30 days late every month. I see late fees being charged only twice, but were both paid. The existing lease is set to expire in 2 months on 8/31/19. I don't think this is a cause for me to back out since the lease expires in only 2 months and I can re-evaluate this tenant at that time, but wanted to get some opinions from the BP community. Am I just being a nervous newbie investor? Many thanks.

You excited to get a buy out of L.A 

You have an out with the lease expiring so that is great. Opportunity to give notice not to renew and start fresh.

Make sure the numbers work on the property, get all what you need to run the property out of state, and become familiar with Indiana's rental laws. Audit the actual lease of this tenant during due diligence if you are just going by word.