Purchasing a rental property

[Sergio Ali]

Good evening BP,

Im looking at a potential purchase of a rental property in up-state NY and it seems like a good deal however the 2-family house is 100% occupied month to month.  So the question is, is it a good idea to purchase a rental with non-leased tenants in place?  If so is there anything I should be asking the seller prior to submitting my offer?

Thanks guys!

[James Mc Ree]

@Rich Baer - I have never heard that a house must be lead free to buy it occupied or not.  What is the purpose of vacating?  Virtually every house built before 1955 contains lead in the paint.  In Pennsylvania, the buyer and new tenant receive a brochure about lead.  Vacancy is not required.

@Sergio Ali - It is a wonderful thing to buy a rental with tenants in place *** IF *** the tenants are good.  They do have leases from what you wrote.  They are just running month-to-month.  You could ask them to sign a new lease with you which would be a good idea.  You should also ask them to sign a document showing how much they have deposited and make sure it matches what the seller says, just in case they have inflated memories in the future.

Jim.