Tenant Occupied Properties
I would just be starting out this year with rental properties. My goal for the new year is to purchase at least 5 rental properties. Currently, I am low on cash and don't want to come out of my pocket too much anyway. I am thinking of starting off by looking for properties that already have tenants in them so that I would not have to look for tenants and maybe not do much rehab. Is this a good idea or should I think twice?
I can't directly answer your question but I think you can put an offer on a house and in the offer request athorization to have access to the house. Then rent it out before you close. I've never done that and it sounds stressful but it might be worth it.
Before I found my first tennant I felt just like you. In this business, finding tennants is a must. There is nothing wrong with your idea, but you will eventually find tennants. My buddy is so good at it, he rarely even places an add. I, on the other hand, seem to always have an add in the pennysaver (home mailer thingy). But if you are in a city type area, there will be demand for your unit. I suggest you face your fears head on. Over time, finding a tennant will be like getting your car washed. You won't really want to, but it won't be that hard either.
[addsig]
Be careful of units with tenants already in them. Not many landlords want to sell property that has long time tenants who have paid on time and have taken care of the property. Most of the deals will be with landlords that either have terrible tenants or that had terrible tenants and terrible tenants can also cause a lot of damage to the property. I just bought a place from a frustrated landlord that kissed me at the closing they were so happy to be done with the tenant. I got it at 50cents on the dollar but I had to pay the bum $300 to leave. Now I am rehabbing and then I have to rent.
I hope that you have a good lease and that you know how to screen tenants or you are in for an expensive nightmare.
Not sure that landlording is a good avenue to start out with no money and no experience.
Brenda