Previous Owners of Your Rental

[Satyam Mistry]

Hello, I am interested to know how much consideration is put on how many times a property has changed owners and if it matters much to you if current owners are also using property as a rental? 

This question is more for SFR and 2-4 unit properties (of course these small multi family are rentals, but owner may also be occupying).

I have generally had success with properties that have had the same owner for decades that show good signs of maintenance and care. I generally prefer this over a property that has changed hands many times over say 10 years, but am curious to know how much other investors consider this factor. I have waived inspections on recent properties I have purchased and have just done a walk through with a trusted agent/investor as the market has been so hot that good properties under $200k are usually gone in 24-48 hours. If you want an inspection your price will generally be quite a bit higher than other offers for the sellers to consider. Hence the reason I do place some thought on how many times the property has changed hands and over what period of time. Thank you for your input.

[Pat L.]

We see that locally with some homes built by a certain builder about 15-20 years ago. They change hands a lot due to poor construction & constant maintenance problems. In fact we noticed that in one sub-division nearby most of the homes had their roofing tile & some sheeting replaced within 12 years of the build date. 

Another big issue up here is unresolved basement leaking/moisture problems. We had one property built in '87 (a model home at the time), where the basement slab poor was so thin it constantly seeped moisture because the hydrostatic pressure beneath it.