Triplex - Do you prefer tenants or no tenants when buying?

[Owen Dashner]

I am finishing up rehabbing the last unit of a 3 plex in Omaha that I am planning to sell.  Currently, all units are vacant, which obviously made it easier to rehab, and will be much easier for scheduling showings.  I'd rather not go through the hassle of getting the units rented before selling, but I can/will if it makes a strong difference to potential buyers.  Personally, I prefer to buy properties similar to the one I am selling when they are vacant because more often than not, inherited tenants aren't great.

But, I am curious to hear if others have opinions either way on whether or not they like a building occupied when buying.  What say you?

[Bradley Sindt]

A smaller property that is value-add, I'd prefer it to be vacant. If turnkey or buying as a rental, I'd be okay with tenants since there's less work to do up front and you've got someone in place that's paying. However, I typically dislike looking at properties with the tenants there. It's usually very uncomfortable for the tenant, but you can often find out valuable information that you wouldn't have gotten without having a conversation with them. When you're ready to sell this property, keep me in mind.