Buying an investment property thats tenanted

[Cory Peters]

We are in the process of buying an investment property that’s tenanted in North Carolina. We submitted an offer and the seller countered, the only changes being switching $500 DD and $1000 earnest to $1000 DD and $500 earnest. I have not signed this yet.

I have asked the seller for the current lease and rent payment statements/ receipts/ or deposit info. Of which she can only provide the lease agreement. She states they pay in cash and that there has not been any paper trail on her end.

1. Can I ask the current tenants if they have proof of payment?

2. Without this info would you move forward and hope they pay and not have to evict them?

3. Should I put in contract the property must be vacant (forcing seller to break lease on someone that may or may not be paying rent)?

4. What should I do? Current lease ends Nov 2019 and paying $1300 without proof.

Thanks,

Cory

[Theresa Harris]

@Cory Peters  Talk to the tenants to confirm the details of their lease.  The owner should be able to show bank statements (or tax form) with the deposits/rental income.  She can black everything out except for her name and the relevant details to protect her privacy.

Make sure you get the full amount of the security deposit from the landlord as you will be responsible for returning it.  You can get a good idea of how the tenants are by the condition of the space.