Buy rental with tenants in property?

Question

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

Caroline Gerardo · Answer

Assume existing tenants are not paying...

Joyce Tavares · Answer

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.

Nick Efaw · Answer

@Michael Ablan thank you

Michael Ablan · Answer

@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

Stephen DeThample · Answer

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

Buy rental with tenants in property?

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