We're looking to do our 5th SFR buy and hold in Philadelphia. All of existing properties required rehab and we selected tenants. With our 5th, we want a break from major rehabbing and are specifically looking at properties with tenants in place. Any tips on how to minimize chances of selecting awful tenants? Also with the 4 existing properties they are all section 8 so we haven't had experience with non payments and have been fortunate with tenants who have appreciated the rehabbed properties. Thoughts? Words of wisdom on our current search?
@Angela Henderson you're in the commercial forum here. You might want to post this in a residential forum for more advice. But I can offer a few things. First, when I buy a property with an existing tenant I generally assume I will be replacing that tenant and rehabbing the property before placing a good tenant. This is the typical 'value-add' scenario.
But if you want to buy a property with a good tenant in it already, you can always write something in the contract giving you the right to do a standard background check on the the current tenant.
Thanks! Didn't realize I had posted in the commercial forum but thanks for your advice!!