How much of a discount should I get on a property with a tenant in it?

[Mike Schorah]

I understand that to accept a property with tenants in it, you have to get a heavy discount.

How much of a discount? I usually do 70% ARV-repairs on probates and pre-foreclosures (usually comes to around $.50 on the dollar).

Do I do 65% of ARV for properties with tenants? 60% of ARV? $.45 on the dollar?

[Brent Sweet]

Quote from @Mike Schorah:

I understand that to accept a property with tenants in it, you have to get a heavy discount.

How much of a discount? I usually do 70% ARV-repairs on probates and pre-foreclosures (usually comes to around $.50 on the dollar).

Do I do 65% of ARV for properties with tenants? 60% of ARV? $.45 on the dollar?

Just my opinion, but I used to try to buy properties with tenants. I mean they already are renting right? What I found is that you end up buying a rats nest at nearly full price with tenants who don't want to move and aren't paying market. So if I ever make an offer on a place with tenants it's a BRRR investment and the tenants don't come with it. That's my rule. I don't want to take over a lease, and I feel rarely can you negotiate down a landlord who is selling it because they have tenants unless you go in and show you are completely uninterested in having tenants in it.