Wholesaling first tenant occupied rental property

[Mike Barron]

I've been avoiding tenant occupied rental properties, but now I'm considering putting one under contract. I have two issues though.

1) I'm not sure how to show the property to multiple buyers with a tenant in place.

2) I don't know with 100% certainty if the property is a good deal.

Here's the details:

The property is a 3/1 @ 875sqft and is in good shape, but it could use a few upgrades along with a new roof. The upgrades would be around 7-9k. The owner has put in hardwoods, windows, and upgraded the bathroom and the kitchen.

The property is in a so-so neighborhood and comps put this property around 32k, and it is currently rented at $500 per month.

So, my questions are:

1) What's the best way to show a tenant occupied property to multiple buyers?

2) What price point makes this a good deal as a rental?

[Mary B.]

Get the owner to let you in when the tenant isn't there or have the owner take pics or even better a video of the interior and put them on your website or use one of the many free sites to share with the buyers.

That's always the catch with occupied properties you can't have people running in and out. Depending on your market it might be ok like in NYC they always buy blind on multifamily residencies unless its a new development.

Many buyers shy away from them for that reason alone. Hopefully the owner has a key to their property. I had a owner of a triplex for sale and we couldn't get in to see one apartment because the tenant changed the locks and didn't give the owner a key, smh....

Kudos,
Mary