Tenants already in place
I want to wholesale a property and there is already a tenant living in the property. So when i wholesale it to an investor should i calculate repair costs or not. would the investor make all the repairs even though the tenant is already living in the house?
Many properties have what is known as "deferred maintenance." This means that there is repair work that has been needed, but has been put off by the current/previous owner. This is especially common for properties that are being sold with tenants in them; because repairs are often done between tenants, it's possible that there is a lot of work that is currently needed that the owner wouldn't have done until this tenant left.
I will calculate all repairs and deferred maintenance costs and factor them in exactly like you would if the property weren't occupied...remember, those repairs need to be done at some point soon.
