Occupied Property or Unoccupied Property?

[Richard Xyminies]

This is my first investment and I am currently looking at 2 rental properties. I am struggling to make my decision as to which property I should choose. One of the properties are occupied with a tenant that has been in the unit for over 10 years. It needs about $5000-$6000 in order for me to get the current rent rate and cashflow. On the other hand the unoccupied unit needs about $1000  to do some touch up and have a greater cashflow than the occupied. I struggle to make because an investor suggested to get the unit with a tenant with years because it's already a functioning business.

Any suggestions?

[Sarah Brown]

Not everyone likes to inherit tenants.  They are kind of a mixed bag on what you will get.  If you do decide to go that route, make sure you do some due diligence on how they keep the property, how consistent they are in paying rent, and what their lease looks like.  Are they in a lease, or are they month to month?  All play important factors.