Buying SFH or Duplex that is tenant occupied

[Nicholas Gallinot]

Hi everyone!

I nervously asked a question on here a week or so ago and I got some very positive vibes from the quick answers/help I received, so here goes round 2. I am in the 'research and money saving stage' of my REI career and I feel overwhelmed at times by how many ducks I need to get in a row in order to comfortably take that first plunge when the time comes. My last question dealt with looking for a property manager and other members of my 'team' that I should have in place as I get started, and I now think I have a pretty good idea of how to go about taking care of that.

My new concern is dealing with the occupancy of the property at the time of purchase. As I had said in the past, I would like to focus on primarily buying multifamily homes (duplex or triplex) or if the situation happens to be perfect I would definitely consider a SFH. So assuming I am going to be tight on money at the time of purchase, and if I go about scrounging up enough cash to put in the necessary down payment/closing costs/any other upfront money needed, would it be beneficial to find a property that is already tenant occupied? I feel as if getting instant cash flow, even if it is just until the end of their current lease, would be very beneficial to getting my footing. Otherwise, I will have to have even more money saved up to cover the vacancy until filled, correct?

I understand there are some risks that go with having tenants already in place, such as they weren't screened by myself or my PM, they may not fully agree to the terms of my lease as opposed to the previous landlord, current rent price may not be where I want it, etc.  I'm just wondering if it is better to have these risks versus a vacancy of an undetermined amount of time that could end up costing more than I could afford and putting my out the game super early. 

I know its bit wordy for a simple question, but just trying to explain my thought process.  Thoughts?