Should I buy a property with a tenant for real estate investment?
Should I buy a property with tenant for real estate investment?
Should I buy a property with a tenant? It's a big question. A lot of investors are selling their home with the tenant in. Do you like to buy that? Welcome to wealthy Wednesday.
So when this question arises, again, investment is a number game. You have to check the number. If the tenant is living in the property, they are living for years, 10 or 12 years, they may not be paying the market rent right now. Or they may, maybe they increased the rent every year and then they are paying close to the market rent and they're good tenants. So again, it's a number game. You have to make sure the tenant is paying the market rent and have an understanding before the property buying with the tenant that either they have to increase the rent or they have to move out. Because when you buy the property and suddenly send a notice to the family to move out, that's a shock. You don't want to do that. You don't want to go through that trouble or have somebody go through those troubles. So having a good understanding, if the tenant is paying market rent again is good, check the history.
But if this tenant is living there for years and not even paying close to the market rent, come on, it's your investment. You are here to make money for your family. So this is something to think about. So check the numbers, check how much rent they're paying, check the market rent in that particular area, and how much are they going for? And of course the credibility of the tenant. Sometimes you may keep a tenant paying a little less rent. if their credibility is good, they pay on time, that's less headache for you.
So hopefully this information is going to help you buy the right property for your rental investment. Give me a call if you have any questions. My name is Shawn Bhakta from Remax Presidential, South Florida Home Finder Team. I'm glad to help you.
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