Buying our first multifamily that is currently leased below market

[Dylan Mortman]

We are in the process of buying our first investment property, it is a 3 unit, and all the tenants just signed a new lease prior to us (hopefully) closing on the property. However all 3 of the units are being rented below market and should definitely be increased.

What is the lease transfer process? Am I as the new landlord stuck with their current lease? Can I update it to add additional language to further protect my self? And most importantly can I increase their rent?

Any info would be greatly appreciated. (this is my first time ever posting on here! so thanks for the support!)

[Robert Masucci]

Hey Dylan if you purchase the property and the leases then yes you will have to assume and adhere to the lease agreements. Often times people will quickly fill their properties with tenants even if below market just to be able to sell it. Be aware of this before you go to closing. Also check and see what the lease terms are. Is it just one year or is it more, in case you're looking to raise rents later on? You're gonna wanna know all of these things before you actually sign the agreement of sale. Hope this helps a little bit. If you need more, feel free to reach out.