Buying a multi family house thats already tenant occupied
I am currently looking at a multi-family home to possibly purchase and house hack. A tenant has lived there for three years, has never missed rent, and wishes to stay. With what she pays currently I will have a negative monthly cash flow of about 115 dollars per month. Is it normal to raise the rent to make a profit or at least break even with the same tenant still occupying it? If not, would it still be a deal worth doing? I would assume so but I am curious what you all might have to say. Thank you for any input.
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@Mike Harris you said it is a MF -I'm assuming you are taking about a duplex property -and the one renter is currently giving a negative cash flow of 115 dollars per month. You can't generally expect one unit to cover both units in today's market. If that 115 dollars represents what you will be paying as 'rent' you should be very happy and you have more than achieved the house hacking goal.