Sell or Hold California

[Karen Casey]

Hello Bigger Pockets Community,

I have a small rental property in California that is currently vacant, I have a person who would like to move in, but seems in a big hurry to get out of of their current place, which makes me wonder why he's moving. Can I ask to speak to his current landlord? I'm also torn about renting it our or walking away for a while; given the new protections California is giving tenant's. I've done some updating so the place looks good right now and if I sell for asking, I can walk away with $75,000. that I would just hold on to and add to to purchase something else closer to where I live after this COVID-19 craziness has ended. I cash flow $225. a month. Thoughts?

I really appreciate your responses.

[Darius Ogloza]

Any renter who seems in a hurry to leave their present abode is a big red flag.  You not only may but must insist on talking to the current landlord as a reference.  Be careful, however, because if that landlord is getting rid of a problem tenant, he/she is likely to say nice things about the tenant.  You need to ask specific questions about tenant's rent, payment history, maintaining the property, etc.  Do not accept "he was a great tenant" and fluff like that.  Why was he so great?     

Hard to advise on whether to sell but know that you could get stuck for a while in light of the new Covid rules if you choose to go down the rental path.