Updated over 6 years ago on . Most recent reply
Purchasing property with an occupied unit
Hi. I found what looks like a decent deal on a 2 family property in Brooklyn. The first floor unit is occupied with a month to month tenant. Owner does not intend to evict. Should I pass on the deal, or put an offer? What are some of the risks of purchasing an occupied property?
Most Popular Reply
@Rashad Ellis If it is a good deal pull the trigger! In my experience buying property with tenants in place is not a big deal . What makes this situation even better is that the tenant is on a month to month lease so if you don't like them you can always choose not to renew their lease. Before you purchase the property you will want to make sure you get a copy of the lease to verify that the tenant is indeed month to month.
Really the main risk when inheriting tenants is that a) they have a long lease in place thats under market rent and b) the tenants are poorly managed and do not know the procedures of your company.
99% of the time people are genuinely nice and just want to continue living in their current home.