Wanting to buy a tenant occupied rental

[Jeff Mora]

Good morning Bigger pockets family. Im looking to buy my first tenant occupied property but not sure if right now is the best time due to the market. 

If so, what is the best avenue to obtain one? 

Greatly appreciate it from a future real estate investor! 

Ps. Happy Thanksgiving!

[Jezelle John]

Best advice is ensure you have reserves. Real estate is interesting because everyone has a different strategy. Some like tenant occupied because it means the unit is livable. Some prefer unoccupied to do a full gut renovation. I own a triplex in Cleveland and I’m on my 2nd property manager and thankfully I’m only paying for water & sewer , while the tenants pay everything else. It’s smooth sailing now but that’s not how it started. Work on getting your boots on the ground - handyman, contractor, pest control, your PM should be able to assist for a fee but do your own due diligence. Plan that as soon as you close on the property , the tenants are going to complain about something. Have reserves- get new smoke/CO2 detectors, lead inspection documents, find out the property taxes- somehow the previous owner for my property paid for 2021 but did not pay for 2020 or 2019, so I got the bill after closing. Are the tenants on voucher programs, if so get all that information to call so payments can be switched to you or your PM. I like Cleveland - not much appreciation but ok cash-flow as long as your tenants pay their rent. The renovations are what will eat your cashflow so try to stay ahead of it.