Pros and Cons of Buying Tenant Occupied Rentals

[@talus007]

That’s good information that purchasing a property does not void existing leases

[@briannacoleman]

Excellent! Considering purchasing a property that has a tenant. Your video really helped!

[@saifur4323]

Thank you for not being a click bait. Informative and to the point. Keep the great content coming.

[@FairV34]

I’m currently purchasing a property with the old landlord’s lease going on for the next 13 months. After listening to this video and speaking to the tenants, I’m feeling a lot more confident on this investment property. Thank you so much!

[@ItsMandy]

Congratulations on your new property! Hope everything goes smoothly!

[@InspiredJJ]

You’re great Mandy, so glad I came upon your channel. Thank you 👍

[@DarkHorse_50]

Most underrated video help regarding managing properties. Thanks for the insight!! You deserve more subscribers and views!!

[@djtlotoka]

Best Tennent Occupied information video.

[@simonjames8724]

Good information and simple enough to digest. Thank you

[@myaltershego]

Great video! I'm evaluating occupied units now, I'll keep this information handy.

[@bubblelishis11]

Hi Mandy, Such an informative video! One question-you mentioned you had to do some calculating to figure out where you needed to raise the rent to, to make the profit that you needed to make. You you please share the things that need to be taken I to account along with the formula? I’m a first time investor looking into a potential property and I want to make sure I’m making the financially right decision to move along in potentially buying this place. Thanks so much!

[@leathelandlady]

I'm a huge fan of occupied properties for all of those reasons.

[@1sharyah]

Thank you so much for your content!!

[@oshitomaha]

I’m buying a duplex and closing on August 4th. Both tenants are currently on a month to month lease and I plan on raising the rent. There’s still about 2 weeks before I close on this property. Should I start contacting them and let them know the rent will increase for X amount, or should I wait until the day of closing? I plan on presenting them with lease agreements for 6 or 12 months. I just don’t know if I should start now or after my closing. Thanks!

[@ItsMandy]

I have always waited until I close on the property, but I think you could do either way. If you decide to contact them before closing you will probably have to work with the current landlord to have them sign your new lease. Either way no changes can go into effect for at least one full rental period (in this case one month) depending on how much notice your state requires. For me I always call them right after closing and set up a time to come over to the property within the next few days for the lease signing. I make sure that they list any problems with the house on a walkthrough checklist - just like you would do if you were newly leasing a property. If you haven't already taken pictures now is a good time to take some pictures as well - hopefully you don't need them for evidence in the future but if you do you will be really glad you have them. Then we go over the lease together and I have them sign it. I try to be super understanding and considerate since I know they are likely apprehensive about the situation - they don't know me so one of my goals is to relieve any fears they might have. Raising the rent can be touchy. I usually try to explain to them that my expenses associated with the property are higher than the last landlords were (presumably you are paying more for the property than he did), so I do have to raise rent to cover those expenses.

[@oshitomaha]

@@ItsMandy thanks for the reply! This really helped a lot! These same tenants are refusing to go, so I decided to put a $200/daily fee if they stay after the lease ends. Do you think this is illegal? I’m in PA!

[@dianevrules]

@@oshitomaha If your property is located in a low median income neighborhood and you raised that s&&& more than 10%, I cant stand motherf&&^^ like you. Now you're are trying to put those poor people on the street. Anything for positive cash flow huh???? It should be illegal for people like you to displace poor tenants with bs rent hikes.

[@sam78ize]

thanks. useful info.

[@ghiaferrari7585]

Hi. We are renters for 5 years now . Do you think its a good move to buy a rental property like a two family BUT we will still continue renting in our current rental because of school district?

[@ItsMandy]

This is a hard question! It definitely depends on a lot of different factors. I don't think it's a bad idea. Although I would say to be careful, small multi-family properties seem to be crazy high right now, so if you do decide to buy make sure the numbers make sense. I would also think about how soon you are wanting to buy a personal house and if buying the rental would interfere with that. But my husband and I are stilling renting and I actually have a tenant who has a rental in another state.

[@ghiaferrari7585]

@@ItsMandy Rental in another state? Wow that's even harder. My daughter still has 8 years in her current school. So that's our timeline to save for a single family. I think buying a rental first helps you save faster for a dream home as a tenant will pay your mortgage. Although risky. But it will be an investment. We just can't buy a house in my kid's school district. It's out pf our price range. Thanks for the reply. It sure did help me.

[@ItsMandy]

@@ghiaferrari7585 Good luck on whatever you guys decide! If you do buy a small multifamily, most of the time they will be tenant occupied, make sure you consider the tenants as part of the deal. Look at how well they are taking care of the place and ask the realtor to find out how many times they've paid rent late. You don't want to buy with a bad tenant in place. A bad tenant can be your worst nightmare and they can be really hard to kick out.

[@surferbeast124]

Great video! Thanks

[@anelab2308]

If the property owner is putting their unit up for sale do the tenants need to move out? I find it sad if a tenant’s unit is bought and they have to move out. Especially in this pandemic

[@ItsMandy]

In my state if the tenants are in a month to month lease they only have to be given a 30 day notice to move. However, if the tenant is in a 1-year lease that lease has to be upheld until the end of the year and it will transfer with the ownership of the property.

[@desecration171]

In most cases no. However failure to pay rent is one of the just causes for eviction. Without govt intervention a new buyer can evict any tenants that are behind. It shouldn't come as a surprise that the big fish scumbags are buying out all the little fish scumbags during a pandemic. "Voting has consequences" is more than a slogan.

[@talus007]

Maybe put a 5% per year cost of market adjustment right into your leases, and then any year you don’t feel the market justifies the 5% increase you get to be the good guy and say no increases or 2% increase this year

[@juanrodarte1769]

Hi how can i evict tenants that are on a month to month lease in los angeles county?

[@ItsMandy]

Hey unfortunately I'm not super familiar with California tenant laws. My best advice would be to talk to an attorney or at the very least a local landlord who has gone through an eviction before. Sorry you are having to deal with that, I know it is very stressful.

[@dianevrules]

I hope your tenants were protected by AB1482, greedy mother7&&&^!!!!!!!!!!!!!

[@wsiiipsgaming1063]

Hey scared first time investor here! I have a property I'm interested in its 3bd 2ba tenant has been in place for 6 years. Mortgage is 270 tenant is pays 725 a month no major repairs mostly cosmetics this will be my first investment property. Anything I should have before purchasing (Real estate lawyer, business license ect.)?

[@ItsMandy]

I think whether or not you need a business license usually depends on your city. I technically have rental properties in 4 different cities (all one area) - 3 of them don't require me to register the properties or notify the city in any way, but one of them requires a $15 registration fee per property per year. None of them require a business license. I bet you could make a quick call to your city town hall and figure out if you have any requirements. A real estate lawyer is a good connection to have but not someone you necessarily need upfront, unless you are wanting them to write you a lease. The only other thing I can think of off the top of my head is to be sure you know the tenant/landlord laws for your state. You can just google them and you should be able to find a state website that lists them. Good luck!

[@nickc3233]

You look very young (under 30s?) to get into rentals. I bought my home in late 20s and bought rentals around mid-30s. I like to know how a young person such as you able to come up with the down payments? Or qualify for a mortgage? In an another video? Thanks for now,

[@ItsMandy]

Hey! My dad had rental properties for as long as I can remember, but unfortunately he got really sick. My mom didn't want to manage the properties, so she sold some and gave the rest to me. Then there was a portfolio that came up for sell, we got a really good deal on those properties because there aren't a lot of people wanting to buy tenant occupied properties in my town and because they needed a lot of work. I borrowed the money for those houses from my mom.

[@nickc3233]

@@ItsMandy Ha ha, I forgot that not everyone started like me, or from zero. I am almost 70 and wanting to get out of rental business. I sold about half of them in 2021. Anyway, good luck, I am quitting. The California politicians made it impossible for me to be a landlord in the last 2 years. Or (1) No need to pay rent and (2) No eviction is possible.

[@dianevrules]

@@nickc3233 Yes. I love RSO and AB1482. Sick of these sky high rents!!!!!!!!!!!!!!!!! F&^^ landlords in Cali!!!!!!!!! 1 bedroom should not be 2k in the d@mn slums!!!!!!!! Just imagine how much it is in my neighborhood. You Cali landlords are greedy af

[@SpinWave]

you bought a few properties? are you rich?

[@ItsMandy]

Property values are really low in my area.