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Updated about 8 years ago,
Seems like a no-brainer deal. Am I missing anything?
I've come across a deal from a wholesaler whose list I'm on. It's a property that is for sale at $75k, with both a tenant and property manager already in place. Tenant pays utilities. The property is rented for $975/mo., and the tenant has prepaid the lease. I ran the comps, and FMV right off the bat is a little over $100k.
It easily passes the 50% rule, it has built-in equity, and I assume I would receive the remainder of the lease payments that were pre-paid in the deal as of closing. It sounds like a no-brainer deal, which is kind of why I'm hesitant about it.
Obviously I haven't done a walk through or inspection of the property yet, but is there anything else I'm missing that could be a red flag to look for before I pull the trigger?