Under contract multifamily with empty unit.
Hello BP friends, I have my first multifamily under contract and one of the units is empty. Can I ask the current owner to have it rented before closing? Is there anything else I should ask for or stipulate or is that something that you just fill when you take possession? Looking forward to hearing some sage advise...
#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
- 3,639
- Votes |
- 7,028
- Posts
#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
@Celeste Carter-McAfee you want to trust the seller to place a tenant just so you will buy it?
What could go wrong with that conflict of interest?
Oh wow, thank you so much! I am finding it to be a different animal. I will read all you suggestions. I appreciate it to much.
#3 House Hacking Contributor
- Real Estate Broker
- Houston | Dallas | Austin, TX
- 1,815
- Votes |
- 3,396
- Posts
#3 House Hacking Contributor
- Real Estate Broker
- Houston | Dallas | Austin, TX
You can buy it as it is and then rent it after closing.
A local Investor-Agent can help shorten your learning curve and save you a lot of headaches as they tend to understand the local market better.
All the best!
-
Real Estate Agent Texas (#736740)
- (832) 776-9582
- https://tinyurl.com/f4ce9n8j
- [email protected]
- Podcast Guest on Show #469
I agree with most of the sentiment on here. You really will want to fill it with your own tenant. I have had investors get pictures and advertise, show and fill before closing but this can get hairy if there are late problems in escrow like clouded title, not appraising, etc. Typically I recommend filling after closing but in certain times of the year (like now as we approach winter) getting quality tenants becomes harder and harder so I understand taking the risk to get it filled.
-
Real Estate Agent Iowa (#S68688000)
- https://linktr.ee/jaredhottle
Just bought all the books. Thank you so much for your recommendations. Listening to them now.
Quote from @Celeste Carter-McAfee:
Just bought all the books. Thank you so much for your recommendations. Listening to them now.
@Celeste Carter-McAfee
Sounds like a golden opportunity to me. If I were in your physical shoes, I would definitely use that one unit as a way to put together a renovation plan. Just from assumptions, the current tenants might have been there for a long time paying the low rent. If you put a few solid updates in your one unit, perhaps choose the next tenant's unit where the lease is close to expire, offer them first dibs on it your newly renovated unit before you advertise, terminate the renewal. Once they move out, rinse and repeat until you've upgraded the majority, if not all.
Of course, there are several ways to go about this, depending on your state laws and renovation budget, that was just one of them.
Many blessings
@Kyle Ewanic that is a wonderful idea!!! I truly appreciate the wealth of knowledge I am receiving here. I am thinking with the fall appliance sales coming up of upgrading appliances to stainless or adding water saving toilets (water is paid by me). They are only nine years old so hoping they will look fairly good. Only seen in pictures so far, had my PM go in person. I will get my eyes on them this week. Very excited. Thanks again!