First time Investor

[Kathy Tran]

Hello everyone! 

I am a first time investor and am currently under contract for my first property (yay?!). It is a Duplex 3/2 bed/bath and 2/1 bed/bath. I want to occupy one of the units, my preference would be the 2/1 so I can collect more rent from the 3/2 to go towards my mortgage. The seller is willing to vacant one of the units (the 3/2). As for the 2/1 unit There is a long term tenant (10+ years) that has a great relationship with the landlord (they seem to be friends as well) and has been paying rent on time ever since they have been there. They are not interested in moving and would prefer to stay. If getting the tenant out would kill the deal, would you keep the tenant ? Or is that a red flag?. It is a good deal for this property.  In need of seasoned renters advice! Would love to hear everyone’s thoughts! 

FYI I did my due diligence and got a home inspector that was relatively OK. I also did a sewer scope as well that showed that the roots has gotten into the sewers and needed to be replaced immediate. (It is due to a tree that the city grew and will need to be cut down immediately to remediate the problem). (12k for the replacement of pipes and ~5 kfor tree) 

[Ryan Muska]

Remember that we are in this to make money. Is the tenant's rent up to market? If so, keep them. If not, raise the rent. If they make a fuss, get rid of them. You have to remember why you are doing this and that is to better your future.