I found a property that will cashflow BUT...

[Thomas Handy]

I asked the realtor a few questions and she said the owner doesn't want the tenant to find out he's selling the property. The owner wanted to make sure the tenant was staying. He would tell the tenant he was selling a few days before closing. The owned did add that the tenants have been wonderful. Also their lease expires at the end of the month.

I did ask the realtor if a new 1 year lease was going to be signed or if the tenant would go on a month to month. I'll most likely put in an offer but will keep my eyes open since this doesn't make sense.

The area would be considered mid to low working class but a few blocks away it looks like a class D neighborhood.

Tom

[Joel Owens]

What is market rent?? What is the condition of the property??

If the tenant is getting an under market deal then you don't want to purchase until they are out.Then you can asses damage when vacant and negotiate the price down.

Re-upping the lease before selling can be a positive or negative.If the tenant is under market rent the buyers won't like it.If the rent is close to market rent and the tenant is long term and stable it can be a benefit.

You have to closely look at the tenants rental history and paying on time with bank deposits and verify schedule E.Do not believe anything the broker or the seller says.

The broker isn't trying to dupe you but just relaying what the seller is telling them.The seller is the one that really knows what is going on with the tenant and the property but don't want to tell you.