Inheriting Tenants . Yes or No ?

[Connor Moro]

Considering purchasing a property which will cash flow on the lower end. The tenants in the property have been there for 8 years in one unit and 4 years in the other unit. They both intend to stay. How does everyone feel about inheriting tenants? 

[Scott M.]

It is a coin toss.  Get leases, ledgers, estoppels, maintenance records and anything and everything you can get your hands on.  Still, hit and miss.  Have had everything look perfect and on month one they don't pay.  Have had everything look bad and it works out.  There is no guarantee, it is all a risk.  So minimize it the best you can with due diligence but understand even then, things can go sideways.  

Always be sure you are financially prepared for things to go sideways.  If you need everything to go perfect, and if one thing doesn't you are going to be in trouble, then pass.