I don't understand why someone would sell a positive cash flow real estate. I found a whole bunch of properties. Some of them have tenants already inside.
What should I be weary about? What should I look for?
Why would someone sell a positive cash flow real estate?
The investor may have other cash needs outside of that piece of real estate. An investment property requires a certain amount of equity and can be hard to refinance. Sometimes, selling it is the only way to get to your equity.
If you can buy properties with postive cash flow, go for it!
Good luck.
Reply:The market is bad right now and might get worse. It's complicated to have a tenant.
One person I heard of bought a house to use as a rental. The value of the house went down and now his mortgage is more than the house is worth. He wants to sell to cut his losses but it isn't possible to do with the tenant in the house. The tenant has enough money to buy a house but says he'd prefer to rent.
If he kicks the tenant out of the house, he'll have a better chance of selling the house but he'll be without the monthly rent payments and he'll have the monthly mortgage to pay. And there's no way of knowing how long it'll take for the house to sell.
So it can get complicated like that if you have mortgage payments. You need to have good renters and find new ones quickly. You'll get a lot of bs from some renters when it comes to rent payments. Always do a criminal background check and credit report. There are property managers who can take care of things but that eats into your money.
Reply:because they know something you dont. get a home inspection. check to see if tenants have leases. as a landlord you need to be preapred for everything, especially the unexpected. if your tenents split and you have no income, you better be able to cover the mortgage or you will find yourself in the same boat as thousands of americans
Reply:Market is bad, they may want out. There doesn't necessarily need to be a valid reason. If it's good take it!
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