Good to know. We are in the process of acquiring a small multi-family which will be vacant. Once acquired there will be some small rehab to get it rentable again and we will likely be getting good qualified tenants in there. The exit strategy will either be selling the building if we get the right price, while possibly getting the property management contract out of it, or holding long-term and refinancing out the cash we used to purchase/rehab the property.

@Brandon M. We have done both, but in our home jurisdiction there is a very limited set of criteria for requesting a property be delivered vacant or partially vacant, so we have become quite accustomed to Closing with tenants. If the building has vacant units when we submit an offer, we typically request the Vendor allow us to "assist" with filling it (that way we screen any candidates).We review the Vendors application process and screening practices and often will request to re-screen the tenants - we normally solicit consent while pursuing tenant estoppel certificates. By the time we Close on a property we already know which tenants we wish to keep and which we will cut loose (and when).The advantages of Closing on a full building is you have a revenue stream out of the gate. The disadvantage is the Vendor may have week screening criteria, or was eager to fill the building before sale, and you may have a little house cleaning to perform in the first months.As for paying more, the short answer is, "No" - our offer is our offer. We tend to purchase under performing properties and do not believe in paying the Vendor for the effort we will need to make to improve performance. We might offer less for an empty building, but would not increase our offer for a full one.

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Updated over 10 years ago, 09/26/2014

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Brandon M.Poster

Agent / Investor
Clearwater, FL

Buying & Selling Real Estate

Occupied or vacant?

Brandon M.Poster

Agent / Investor
Clearwater, FL

Posted September 26, 2014 05:03

Question for all of you buy and hold investors: Would you prefer to buy a single/duplex/triplex (not counting apartments) with existing tenants with good profiles (credit, background check, etc), or vacant so you can find your own tenants?

Which would you be willing to pay more for, if either one?

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