buying a tenanted property

Properties coming complete with tenants aren’t necessarily as good as the agents selling them try to tell you.

What if they’re not paying market rent? What if the market rent is not enough to help with your holding costs?

Sales agents don’t think like investors, so to them a tenant (no matter what type etc.) is great.

Steve’s buyer beware templates have info on how to check if the tenant in place is a good deal or not.

If you do buy, it generally is a seamless handover – although you do not have to use the PM that the current landlord is using.

Cheers
Mel

Hi Guys,

Finding a property that is currnetly tenanted, is a much better buy in my eyes, though there are a few ifs and but, but do you think the vendor before hand would be stupid enough to get a bad tenant for their investment property.

I very much doubt so, unless they are the desperate kind of property investors, or new at the game.

Worst Case senario, you always have insurance….

Many of the contracts i sign, and once the vendor signs, i will organise insurance immediately. Doing this, in effect protects you, and gives you immediate cover.

Remember like mentioned by Melbear, you can always change the current PM if you dont like the current PM the existing landlord is using.

cheers
s.i.s

“People 4 get that by saving just $3 aday & investing it sensibly over a working life, you’ll end up wit around $1 million.”

Very Well pointed out PeterM.

I do too remember seeing that.

cheers
s.i.s

“People 4 get that by saving just $3 aday & investing it sensibly over a working life, you’ll end up wit around $1 million.”

Hi,

I’m happy to take over a property with an existing tenant, provided I have done enough checking to make sure I’m not taking over another landlord’s tenant from hell.

I’ve seen many landlords sell the property to be rid of the problem rather than trying to fix it.

One of the due diligence templates we complete is the “Property With Existing Tenant” form, which is included in the BuyerBeware product.

Look out for other things too… such as all the necessary documentation being in order and that the rent being paid has been paid and is not just the latest hike justifiying an increase in price.

It’s the things we don’t know that bring us unstuck.

Bye,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Yea i saw that!

quote:

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Perhaps bruce is talking about arranging contracts in his role as a real estate agent up in Qld around caboolture, rather than as a purchaser. Bruce?

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I hope so..

Matt

“If you do what you have always done, you will get what you have always had.”

“Isn’t it time for a change?”

To the Bear-o-philes who think Queenstown is ripe for significant capital gain, despite Sterlite Industries outlook, since my original post I have bought the following:

– a brick 4 pack for $280,000. gross wkly rent $520. privately valued at $440,000 2 weeks after purchase.

– two houses in an up and coming Brisbane suburb. gross rental yield 5.1%.

– In the three weeks before Christmas I signed 11 contracts to get the two latter properties.

I also managed my parent’s 20 odd rental properties when I was growing up.

I’d be interested to hear about the buys anyone else has made here in the last 4 weeks, in real estate or any other field, apart from the share market, in accordance with the moderators’ wishes.

I’d also be interested to hear who SIS gets his insurance through and whether he has made a claim for damages by a tenant.

SIS also says
‘do you think the vendor before hand would be stupid enough to get a bad tenant for their investment property.”
Well if you read above SIS, Steve McKnight obviously does.

Bruce
Mooloolaba, Qld

SIS

I don’t think bruce was challenging you to anything. Please don’t get a boast session going, it will produce absolutely nothing. If people want to run through their purchases purely as a guide to prove positive cashflow props exist, that’s fair enough.

This isn’t a pi**ing competition.

Just to close, SIS, don’t pat yourself on the back too much… I’m sure there’s other people around who are just as, if not more, prolific, than you, and they don’t feel the need to brag. Some of us have had to get on our own two feet without our mother’s help, and don’t need you shoving your successes down our throats, as commendable as those successes are. Yes, you clearly work hard and are smarter than the average 21 year old, and you come across as a really good bloke, eager to help etc which is FANTASTIC… but you don’t need to rattle off how many properties you own at the drop of a hat. Property investing is about a lot more than just numbers of properties owned.

Anyway, that wasn’t meant to be too mean, and I don’t want to have an argument, so I hope it didn’t come across too bad.

Cheers
r

no worries SIS, I could have worded some bits a touch better in hindsight… as I said, I wasn’t trying to be nasty.

Cheers
r

Richmond, I am not a journalist so I obviously do not you have your literary skills so let me kindly ask you what you mean by the words
‘shoving your successes down our throats’.

I have seen plenty of posts by S.I.S.. He clearly is able to dedicate a lot more time than most people responding to posts and there is little doubt that he is very generous in going out of his way trying to help his fellow travelers along the winding real estate path with facts and advice.

So in which post does he appear to you to skite ?

I would actually be more concerned about posts by people who have big opinions based on no experience.

How will we website visitors be able to differentiate between the quality of the different posts without some background information being disclosed somewhere along the way ?

And at what point does such detail turn into ‘big noting’ oneself ?

Pisces133