Buying a house with a tenant that has lost his job

[Lisa H.]

I have just been notified that the house I am in contract with--that currently has tenants renting out--has been late with their rent for the last 3 months due to a job loss. I just got confirmation he got a job but obviously the only thing I can verify is his rental tenant history.  Which isn't much since he started renting in April 2024.  There are 4 months of on-time payments consistently. Then 3 months of late payments consistently (the last 3 months). With no rent for this current month. I also did some investigating online and see the renter has a tendency not to hold down a job.

I offered asking price (fair market) because it was the sellers bottom line and the fact there were already tenants renting. I'd cash flow immediately without having to pay for a PM to place tenants ( I am out of state).  I am unsure if I should proceed.  The house has some great pros:

• Newer 2000's home with renovations in the last 4 years

• Renovations include: paint, lvp, toilets, vanity, ceiling lights/fans, roof and HVAC

• Tenants look like they are up keeping the house decently. Very clean and mostly organized.

The rent is at fair to maybe even above average. The property hit's the 1%.  Actually 1.45% but when factoring in PM, vacancy and renovation percentages, my cash flow is only $160.  Which I know is low but am looking for long/mid term equity too. Not just cash flow.  

Thoughts?