All Forum Posts by: Alec Kinard

That was my thought. The seller is taking the stance of “I’m not going to reduce my numbers because I’m giving you a tenant who is going to pay for your mortgage for the first 8 months.” 

Figure this would drive away most investors as well as people who are looking for a place to live in themselves. I don’t want to miss out on a good deal but I also don’t want to buy a disaster...

BiggerPockets members, 

I've recently found a townhouse in Georgia at a good price with great rental upside. The caveat is that is currently tenant occupied until November. The seller moved out of state and wanted to just cover her mortgage, so she rented the house out at a price equal to her mortgage. The current market rent in the area (verified by researching local comps) is about double what her current tenant is paying. 

My question is this...should I run from a place currently occupied?? If I purchase the home I would barely break even for the next 8 months (possibly even lose a little money each month). I would be dealing with a tenant whom I did not screen myself, verify their income myself etc. At the end of November I would obviously raise the rent to the market rates and, I'm assuming, the current tenant would not be very happy and move out. 

Or should I pursue the opportunity and break even/lose a little for 8 months...all while knowing I will be making 20%+ cash on cash return after November? If pursuing, what steps would you recommend taking to protect myself from the many horror stories I've read on here?

Any and all advice is appreciated!