Need advice - Purchasing First Investment Duplex

[Raj Singh]

Good Afternoon BP Community,

I am excited to purchase my first investment property (Duplex in Sacramento, CA) the duplex purchase price is $600,000 and there currently are tenants at the property. One tenant is month to month, paying $2000/ month and the second tenant has a lease till next Feb 2025 at $1700/ month. I wanted to ask for the advice of the experienced investors who have purchased multi families units (especially duplex's) on a few topics.

1) Do I still need to vet the current tenants at the duplex? Is there anything that should be done from a screening standpoint for these existing tenants? 

2) What are the potential challenges that I should be aware of with being the landlord of a multi family unit? What are some of the tips and pointers you can provide on how to navigate these challenges?

I would appreciate the sage advice :)

Thanks!

Raj 

[Sam Applegate]

@Raj Singh

I agree with @Scott Scoville that it's important to check the leases to make sure the rents match what the broker or agent told you. You want to confirm your expected income.

After checking the leases and seeing what the current rents are, I’d also compare them to market rents and see how much time is left on the tenants' leases. Depending on your plan, some lease terms might work out better or worse. For example, if both leases are month-to-month, the tenants could move out right away. This could be good if you plan to raise rents quickly, but it could also be risky if you’re counting on steady income to cover expenses. It's worth weighing the pros and cons to make sure it fits with your overall strategy.