Overly skeptical of already rented properties?

[Justin H.]

I've seen a lot of listings on Craigslist for already rented duplexes or SFHs for dirt cheap. An example is this for $39,900:

This is a fully rented 2 family. Valued at $80k. The front unit has just been freshened up and has a newer tenant in it paying $425/month. The rear unit has a longer term tenant and they pay $400/month religiously. Each unit has 2 BR's and 1 Bath. The back unit has access to the full basement, which is partially finished with extra storage. There is ample parking to the rear of property. This is virtually a turnkey investment opportunity that could make a nice monthly car payment for you without you lifting a finger.

I'm very skeptical of these deals because why wouldn't someone keep something with such good cash flow? Or at least sell it for much closer to its value? It's just a little toooo easy...

Comments?

Justin

[Jim Doine]

In rough neighborhoods (even if they are not war zones) you can throw cash flow figures out the window. Very difficult to find and keep quality tenants so vacancy rates and repairs after move outs soar, especially without exceptional management which is very difficult to find.This situation can create the tired landlord anxious to sell his property. The cash flow may look good on paper but in reality its not. :roll: Jim