Properties with bad tenants

[Gavin Henry]

I’m a new investor. I found a condo (2bed 2 bath) in a good area. The current landlord is selling the property for 130K with the tenants inside of it. The tenants have been giving him a hard time and due to COVID they haven’t been paying the rent. To make matters worst, the government is not allowing evictions at this time. Should I still try to buy this property? My offer would be 90K (finance).

[Jimmy Chao]

If you feel you can handle the non paying tenants and all the eviction activity that can require, especially in this environment of eviction moratoriums you may have a great deal on your hands. If you are confident you can clean this situation up, make an offer for delivering the building vacant or you take it with tenants in place. Obviously the latter is significantly discounted. What is great about that is it communicates that this asset as is isn't worth many people buying. If you can handle it you should get it at a deep discount. Or they can clean up their own problems and sell it for more.