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Updated over 8 years ago,
Tenant rents as part of sweet seller package
Hello Wise BP community,
I have checked the rent comps (Rentrange, city-data, Zillow, etc) in the area and the numbers do not add up as suggested by the realtor. The realtor says the seller has "potential" renters who will sign a 1 year lease at a price higher than what I am seeing with the rent comps. The question I have is:
Once the tenants sign a 1 year contract and then I purchase the home. Are the tenants still obligated to the terms of their rental contract with the seller and I can take over the tenant lease to make my numbers work?
Two side notes:
A)Realtor is representing both seller and buyer.
B) I have a feasibility clause in the contract that loosely states: if the numbers do not work, I can cancel the contract.
10Q in advance for your advice,
Km