Would You Buy a House with an Existing Lease?

[Ying Tang]

Hi everyone,

I came across a single-family home that’s currently tenant-occupied with about 10 months remaining on the lease. Once the lease ends, I plan to have the property professionally managed. Based on projected rent, minus the mortgage and property management fees, I’d be cash flowing around $800–$1,000 per month (not factoring in vacancy, as the PM company offers a guaranteed rent program).

That said, I know there’s risk involved. Even though evictions in Phoenix are relatively straightforward, there’s always the chance of tenant issues or property damage.

I’m considering making a lower offer to account for those risks. Have any of you bought tenant-occupied properties before? Would you go for it in this situation? And what strategies would you recommend to minimize risk?

Thanks in advance!

[Nicholas L.]

@Ying Tang

there is no way a random on market property cash flows that much.  something is off.