Should I buy the Rental Property next door?

Question

The owners of the property next door are selling.  I'm do home remodeling.  I like the renters living in the property. What are the cons to buying in this climate?

Ryan Howell · Answer

@Maurice El-Amin - As far as the climate, I suggest buying something that you are okay holding for 10 years, which is enough to weather a down-turn and make sure it meets your criteria.

As far as next door, you may like the tenants, but that could change easy or make it easy for them to take advantage of you.  I wouldn't let it stop me, but just be aware.  An option would be to give it to a PM and they don't have to know you're the owner.

Dalyn Hazell · Answer

@Maurice El-Amin Countless investors are still buying in this climate. There really isn’t a bad time to buy real estate, as long as the deal makes sense.

Regarding this property next-door, is it a property you could get a good deal on? In other words, is there any reason the seller will be motivated for selling it? Is the property in distress? Is the owner going through a problem like divorce, death, or death that would force them to sell? If any of these are true, then you have a chance of getting a good deal.

If the property is in good condition, there are no huge reasons for the seller to sell, ￼￼￼￼and they are selling it for top dollar, then it is a lesser quality lead for an investor.￼

Good Luck!￼