Cash Rent, No Evidence - Red Flag?

[Nick Choruby]

Seller has 7 single family homes and wants 100k each. He claims the rents are all $1000 a month, but has never used leases, collects cash only, and won’t provide bank deposit statements or any form of evidence. Won’t show properties or provide any additional info until under contract.

I would be buying these strictly for cash flow, so no plans to replace current tenants if the rents hold true.

What are some options here to protect myself?

[Aaron W.]

@Nick Choruby Add a due diligence and home inspection contingency that will allow you to cancel the contract if you are not satisfied with what you find out.

If you do end up acquiring these properties, you will want to make sure the tenants are current on rent, paying the amount agreed, and are ideal tenants.  I'd highly recommend not accepting cash and going with some online payment system.

Best of luck!