Possible Tenant, But No House Yet. Please Help
Through a message board that my wife belongs to, I have a lead on a family that is moving to my area that would like to rent a house before they buy anything. Since I am a beginning investor, I think that this would be great opportunity for me to make my first purchase because I would already have a tenant lined up.
Can anyone give me some pointers on what to ask when I talk to them about what they are looking for.
I know I should ask the questions listed below, but I was wondering if anyone had any suggestions that would help me with my first investment property.
How much can they afford?
How many bed/bath?
Type of house? Cape cod, bi-level, etc?
Thanks
Have them fill out a rental application. It asks all the questions you need to check them out and make sure they are not con artists and losers.
You don't want to lose money or equity in your property.
Since you don't have a house yet, you can tell them you may have a rental opening up. If they want to be considered, please fill this out.
I have learned the hard way, that very very few people can be trusted up front, and not knowing anyone who knows them.
Good luck
There is an investor here that makes a lot of profit doing just what you could potential do. He gets leads on people moving into the area (how i'm not sure). He finds what they are looking for and then buys the house to rent to them. He tells them to go look at for sale houses at times and tells them that rents will be 1% of the asking price.
Start out by taking a rental application. Then start looking to find a house that meets their needs. Good luck with everything!
Hey,
Having a tenant lined up is nice, but it does not add much to the overall picture.
When you rent a house, it shouldn't take more than a month (4 weeks) to get someone in it. If it does, you need to review the property and/or your marketing. Therefore, having a tenant ready saves you ONE MONTH'S rent.
The property MUST stand on its own, to be worth your investment. It needs to have good cash flow and/or good equity.