buying a rental with a tenant in place?

[Account Closed]

I have seen listings where the description states "tenant would like to stay" and their rent is below market average or they have a 1/2 year contract with rent below market value. What would be positives about having a tenant in place versus buying another property and vetting the tenants out? Anyone have ideas on this?

[Chris B.]

I would definitely want to read the rental contract and look at the payment history and deposit before I agreed on a purchase price. As stated, there is a very good chance the situation is sub-par. I would still move forward with the deal, but account for in my offer any likely lost income due to sub-market rents, likelihood of Covid non-payment, etc...