Homeowner · Canada · Member since 2024 · 2 posts · 4 votes
Hello!
I am wondering if anyone has experience in just purchasing already rented out homes that don't need the Rehab.....I was thinking to avoid hard lender fees initially and all the refinancing fees, why not factor that in and buy one that is already tenant occupied so its turn key, income right away?
What things do I need to consider...aside from the obvious- are the tenants good and paying rent and no arrears?
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
1y
You've actually skipped the rrr not the br. You are still Buying, you are not rehabbing, renting or refinancing. This is probably 25% of all rental sales. (Many buyers prefer empty properties, at least in SFR, although SMF usually comes with zero or 1 vacancy for owner occupants.) The downside is you're aren't screening the tenants, and walkthrough inspections are harder to perform and spot "hidden" damage. The upside is you have zero vacancy at the beginning. You should get AT LEAST a 10% discount for tenant occupied properties. "Regular buyers" (owner occupants) can't purchase it and they make the majority of the buyers. You also want an estoppel signed by the seller and the tenants saying: rent is x, security deposit is y, amount of past due rent is z, and a copy of the lease.