Fully rented vs fully vacant? Which do you prefer to purchase?

Question

Catherine German · Answer

I vote for Vacant. You can make sure you screen the tenants and that all lease documents are current & in place. You will also have your move in photos and inspection which many times you don't get when you purchase occupied units. This makes doing the disposition of security deposit rather difficult at move out.

Account Closed · Answer

As a manager, I'd prefer vacant.  You can vet your own tenant, and you'll have a house full of tenants who think your unit is rented at a fair price.  Way easier than trying to raise rents on old tenants, or dealing with old tenants who preferred how Joe did things.

Joshua Gordon · Answer

of course if short on money, having a tenant already would be very helpful.  I guess it depends on your financial situation

Thomas S. · Answer

Buying a fixer -  defiantly vacant.

With a fixer the place would be filled with any applicant having a heart beat and you would end up with a tenant nightmare.

Michael Barbari · Answer

@Joshua Gordon I prefer vacant as well. You can rehab what you need and screen your own tenants. You never know what you might inherit.

Zach Quick · Answer

@Joshua Gordon I prefer vacant so I can update and do CapEx up front instead of going back over and over. I just purchased a 12 unit that had 9 units empty that we are rehabbing. Obviously not making me any money yet, but i will know that 9/12 are pretty much brand new in terms of the big $ items.

JD Martin · Answer

If I was buying a MFH, I'd prefer a mixture unless you were talking an entire rehab of all units. I would not want habitable units sitting vacant because I was rehabbing other units.

That said, I don't like inheriting tenants, so I only buy empty properties.

Fully rented vs fully vacant? Which do you prefer to purchase?

Fully rented vs fully vacant? Which do you prefer to purchase?

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