What should you do if you find a great real estate deal, but the property comes with inherited tenants? On this Q&A Monday, I’m sharing my outlook and experience dealing with existing tenants in a rental property.
Every Monday, I’m answering your questions here on the podcast. Today you’re going to hear three listener questions regarding inherited tenants, how to appropriately calculate your Freedom Number, and the BRRRR Method.
On this episode you’ll learn:
- How to deal with inherited tenants.
- If you should include financing when calculating your Freedom Number.
- The benefits of investing with the BRRRR Method.
How to Deal with Inherited Tenants
Inherited tenants can be great… or horrible! Be sure to use caution when considering purchasing a rental property with existing tenants. If you can attain current leases and proof of payment from the property manager, you should have no problem. But if you’re purchasing from a DIY tired landlord, chances are that there are few systems in place. Use caution and make sure you know the full picture before you sign the purchase agreement.
If You Should Include Financing When Calculating Your Freedom Number
The Freedom Number is designed to cover all of your expenses, so that you can live financially free without a 9-5! But if you’re like most people, you don’t have the cash on hand to purchase all of the rental properties necessary to do so. If financing will be part of your monthly expenses, then try to make an estimate when calculating your Freedom Number.
The Benefits of Investing with the BRRRR Method
The BRRR Method is a great option for a go-getter real estate investor. If done correctly, the BRRRR Method can help you quickly grow your real estate business in a matter of a few short years. Just remember that the success of this strategy lies in your ability to start with a property that is below market value, and you will have to put a lot of work (and funds!) into a renovation. If it sounds like a fit for your personality and investing style, go for it!
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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