Updated over 4 years ago on . Most recent reply
Selling a currently rented house
I'm in Memphis and have a rental that I'd like to sell. I paid just over $100K 3years ago but think i could make $60K+ on it. My tenant just signed a 1 yr renewal in Sept. Can I can legally asked the tenant to move and agree to give his entire deposit and perhaps some additional cash? I know people sell occupied rentals but I don't really want to discount it and for the price that I'd list it I'm not sure it would be an attractive investment for someone else. What else do i need to consider?
Most Popular Reply
@Jason Brown you can modify any contract if both parties agree to the changes. They just sign the early termination agreement and you agree to give them the money after they leave. That is incentive for them to follow through. If they don't leave, that is considered hold over and you will need to evict them. If you want to reduce risk, I would wait to list the property until the tenant moves out.
Another option is listing the property with tenant in place. There are investors who prefer to buy properties with paying tenants under a lease. The number one fear of new landlords is placing tenants, so this adds a comfort level for them. You can always try listing the property with tenants and see how it goes. In the listing description you can say "Investment opportunity, paying tenant in place with lease."