If Buying MF To Rent, Do You Prefer Occupied Or Vacant?
I was not comfortable buying the place w/ 1 unit occupied, so I may delivering empty at close of escrow as condition. People told me I was being overly upight.
The sell agreed, so there was no issue.
Now if I go to sell the place do you think buyers would want it vacant or occupied?
p.s.
Does anyone know the law in CA, on breaking a lease if I had to boot the people to clear the units? I suppose I could do month to month as well.
It all depends on the buyer and their intentions.
As an investor, I prefer buying a multi that's occupied, fully rented. It's less work and worry on my end. I just step in and collect checks. I don't have to go through the hassle of finding tenants.
But the vast majority fo buyers aren't investors. So logic would dictate that they'd prefer to have at least one unit vacant, so they can move in.
Fact: multis that are fully rented sit on the market longer than those that have at least one unit vacant. The stats back it up.
The reason: a fully rented multi appeals strictly to a small segment of the market, ie. investors. Whereas, having some vacancy appeals to the entire market of multi buyers, ie. investors as well as the average home buyer looking to supplement their income.
[addsig]
The real target Iwant for the sale of this property is a fairly experience buy.
Thanks for the tip.