When purchasing a multi-unit, what are deal breakers?

[Natalie Jarusewski]

I own a duplex and am selling it. It's in a unique situation where both units are vacant. Is this a good time to sell? Or do other investors see this as a red flag and would prefer to have current leases?

Should I sign leases? What type of leases are most desirable?

A little more about the situation: I bought a duplex last year as a first investment property / primary residence. I planned on living in one unit and renting the other, this worked great. I also invested in improvements: new roof, water heaters, other major appliances, and a kitchen renovation.

Now, my situation has completely shifted. I need to move across the country and it isn't feasible to manage the property. I also need to liquidate in order to afford to purchase a new primary.

[Jaycee Greene]

Hi @Natalie Jarusewski. Welcome to the BP Forum! I would recommend finding a tenant for at least one of the units, more than likely the one you lived in. That way you theoretically offer a better option for someone looking to do exactly what you did (live in one unit, rent the other one out). 

[Bradley Buxton]

@Natalie Jarusewski

There are pros and cons to both. Without tenants it's easier to show the property and the condition can look better than if tenants have their stuff everywhere. Also the new owner has the advantage of screening their own tenants and signing leases at or above market rents. If you can sign tenants in one side make sure they are the best you can get and are paying at or above market. Investors do not like tenants that pay below market and re locked into long term leases.