MLS-listed occupied rental property ... pitfalls? DD?...

[George P.]

Saw a (newly listed and attractively priced) rental property with tenant whose lease expires 4 1/2 months from now. The current owners live in another state, 10 hours away. Property has been owned by this couple since 1994 - most likely paid off, but I can easily confirm that if needed. (I didn't go out to see the property, only checked some info).

I am not sure what the situation is, and MLS remarks suggest that "great tenant is wanting to stay".
I assume - but please correct me if I'm wrong - that after the contract is accepted, prospective buyer can lawfully ask to provide the payment history, copy of lease and recent Schedule E for buyer's DD and verification. I assume the inserted contact clause "subject to buyer's satisfactory review of the documentation" will allow to void contract should the discrepancies be found?

Being very conservative and suspicious, I assume the worst case scenario: poorly-paying and/or non-cooperating tenant (hence listing an occupied property). I'd want the tenants leave regardless, cause I'd like to find my own. But I guess I should calculate the worst case scenario with eviction costs and no payments for several months?

**** What else I should be concerned about? Please chime in.
Thanks !! ***

[Bill Gulley]

You buy subject to the rights of the tenant. If the tenant is willing, you can get info from them, if not, you need to wait until just before the lease expires and qualify them for a new lease.

Why be so hard on the existing tenant? Des the tenant know the property is being sold, probably so if it's listed, might have a sign in the yard. Meet them during your due diligence period after a contract is accepted, contract can be subject to meeting them. You'll be going inside and you'll see what the tenant is like.

Lots of reasons list an occupied property.

Not wise to have an attitude of just wanting to clear a tenant out you know nothing about, they could be better than the one you think might be better, never know. )