Buy rental with tenants in property?

Buy rental with tenants in property?

Member since 2021 · 2 posts · 0 votes

I am looking at buying a multi family unit that has 3/4 of the units already rented out. What do I need to know going into a deal like this? First time buying a pre-rented property

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Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
5y

Assume existing tenants are not paying...

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  • Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
    5y

    Assume existing tenants are not paying...

  • Real Estate Agent · Las Vegas, NV · Member since 2020 · 459 posts · 305 votes
    5y

    That you may not be paid rent until after COVID.  Make sure the price reflects that.

  • Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Nick Efaw - Assume the seller is with-holding information, and one or two tenants are behind or not paying. 

    Ask for Estoppel agreements or tenant ledgers.  This should help you figure out where things stand payment wise

  • Member since 2021 · 2 posts · 0 votes
    5y

    @Michael Ablan thank you

  • Real Estate Investor · Hayward, CA · Member since 2015 · 134 posts · 88 votes
    5y

    Ask to see tenant applications and ask if tenants are current on the rent and are not affected by Covid.  Walk thru each unit and meet each tenant (Facetime works for this).  We just bought a duplex with two tenants and kept them.  They are great and pay rent early each month.  It's a win-win because we can do repairs gradually while getting rent as well.  Just do your screening...best of luck.

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