What are everyone’s thoughts on purchasing properties with tenants in place currently paying below market rents?

3) Price is too high for prospect perception of property value--- Prospects are only willing to pay so much for what a property is.

That or pay a 6 cap for a 60 year old building with Billy Bob Hot Dogs as a tenant.

Someone might wish to make the same cash-flow with double the doors because they generate SUBSTANTIALLY more wealth in the long run from mortgage pay-down and market appreciation with the increased doors and increased use of leverage. 4.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

If you gain interest on the deposit, then you must pay that interest out to the tenant each year which adds to complexity and workload.Any bank should work.

If we have to pay for housing anyway, we might as well make the most of it.

Something that when i visit puerto Rico i have a place to stay and that will pay itself off.

I rent it out as a vacation home to others too... this helps pay the bills.

It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees.