Updated about 6 years ago on . Most recent reply
Huntsville AL Quad-Plex... Turnkey or nah?
Assuming the same purchase price and property condition, would you prefer Option A or Option B when buying a Quad-Plex in the Huntsville/North Alabama market. If you can ad some details as to why you prefer one option over the other it would be helpful.
Option A. Established tenants. All 4 units rented. Leases and property management in place.
Option B. Property rent ready but all 4 units unoccupied. No leases or property management in place.
Most Popular Reply
How you doing brother!
Having recently purchased a quad with existing tenants, my answer would be "It Depends"! :)
Let me give some more details
1. If the existing tenants have been staying there for more than a year and are paying market rents then I would definitely go with option A.
2. If the seller is not giving clear answers on tenant lease history or he does not have enough documents or is hesitant then I would suspect that there might be tenant issues after the purchase.
3. If the PM is a company that you are not sure of then that might be another reason to go with option B.
I would incline on option A if there are no red flags based on the above 3 points.
-Gorden