Mismanagement problem solving

[Jeremy Christensen]

I found a duplex I want to buy that seems like a no brainer as far as what the numbers say but the current tenants in the units have no leases and the building is way below market rents. I’m guessing the banks would not like this so what are my options and what would you do to solve this isssue? Thank you!

[Daniel Beckius]

@Nathan Gesner Even if it's your first property, when you apply for a conforming mortgage to purchase a 2-4 unit property they will count 70% of the gross market rents towards your income to qualify.  Maybe there are different rules in your neck of the woods but here in Colorado also in WI, TX, and MN it's 70% of market rents, no leases required.