Rental Properties Below $70k with Existing Tenant Experience

[Raphael Ramos]

Inquiring if anyone had any experience or willing to share learning resources involving Investing in Rental Properties $70k and below with existing tenants. Pros and Cons.

Thank you!

[Derek Diamond]

@Raphael Ramos

Hey Raphael and welcome to the B/P community.  This is a very broad questions. So I will just give you a few of my opinions.

Cons: Have you heard the phrase "you get what you pay for"? Meaning you will probably not get the  "best" tenants.  This can lead to headaches on your part.  They may not pay on time or the full amount.  You might have to evict them which is expensive.  They may damage your property because they know you can't get any more money out of them and there is no consequence for their actions.

Pros:  You already have  tenant in the building and you don't have to take the time or money to put new ones in.  You don't have to do background checks(you should probably do this anyway) because they already live there.  They could be lovely tenants that pay early and every month.  Usually inexpensive real estate can have a higher cashflow per month, which is great news!

See what I am getting at here? Before you buy it check to see how the tenants are and if they need to go or you need to make repairs to the property just add that into your numbers before you buy.  Good Luck!