I am considering a 2-unit building. Both units are currently occupied, and both tenants would like to stay on, if possible. I like the idea of instant cash flow upon purchase, but I am also very weary of inheriting deadbeat tenants. I'd like the existing tenants to submit an application, credit check, and income verification. But right now, I have no contract and no standing. I am unsure of the timing of when to bake this in.
The rents are about market. The asking price is right, especially if I have two viable tenants from day 1. November/December is a very slow time of year in my town to be looking for renters, and I'd likely be looking at vacant units until the new year, if I request that the seller deliver the building vacant.
Have any members bought buildings with tenants, and if so, what kind of precautions and procedures did you take to protect yourself?