Buying Property with Existing Tenants
Quick intro:
I have been reading on the blog for a few months. Just became a Pro member last week. We (my husband and I) are looking to buy our first rental property. 2-4 family.
The numbers:
3-family home
2 1-bedrooms
1 2-bedrooms
Current rents:
$750, $750 and $600 (the 2-BR because tenant is seller's sister)
Rentometer tells me the 1BR's can be rented for around $900 and the 2BR for $1,200.
With the Rentometer numbers, according to the BP calculator, cashflow would be $443/month.
One of our contingencies is that the tenants move out before closing. My logic is that I need to raise the rents for the numbers to work and I am guessing the tenants won't like this, especially the sister whose rent I would double.
What do you think? I believe the tenants not leaving before closing is a dealbreaker for me. Am I missing something? We are in MA.