Hello All,
I have the oppotunity to take over 2 lease option contracts in Tennessee. I am in Virginia. If I needed to I could go look at the properties. I have seen the apprasals and pictures of the properties. However Iam apprehensive. What do you guys think.? The tenants are already in place and the current investor needs out of the deals.
I have seen the apprasals and pictures of the properties. However Iam apprehensive. What do you guys think.?
I would never take that type of action without at least visiting or someone you trust visiting the properties. Appraisers can make things look pretty nice by picking and choosing what they address or do not address. What type of term is on the leases now? How long have the current renters been there?
Axaflaxar,
I would NEVER buy a property without looking at it first. It is very difficult to determine the condition of a property by looking at pictures. It is also difficult and more expensive to manage a property long distance and you should be apprehensive.
It is also a red flag when the owner needs out of the deals. Why does he need out of the deals?
All rentals (in fact all deals) should be judged on the numbers. You didn’t post any numbers. The mere fact that you can buy these properties doesn’t make them a good deal. What are the gross rents and purchase prices?
Good Luck,
Mike