RRZ.com Investments

Property Investment?

I was invited to an open house by a broker. It was more of an investment property. This is what the broker told me about the property: 1*** Unionport Road, $119K, CC $543.33, tenant paying $940 The tenant that lives in there is renovating the apartment himself. Does this sound like a scam or am I viewing this wrong? The broker advise me if I am interested, the property could be mine but the tenant included and she will lower the price to $114,000. What do you guys think? What questions should I ask the tenant?

Public Comments

1. Like mah Daddy always said to me. There's no such thing as a free lunch and if it sounds too good to be true, it probably is. You have to take the tenant are you kidding me?
2. You don't necessarily need to speak with the tenant. I would suggest hiring your own realtor if you are legitimately interesting in purchasing the property. The realtor should be able to pull comparable sales in the area and let you know what the fair market value of the property is. As a buyer, you do not pay any commission to any agents, only the seller will pay out of the proceeds of the sale. Also, check to see what types of rehabbing/renovating this tenant is doing. I would not actually buy the property until after the work is done. I hope this helps...
3. Before you buy require a verification of employment from the tenant and proof of rent. Maybe he hasn't been paying. There may also be problems they don't want you to know about. Have an inspection done and go with the inspector when he does it. When inspector points out the problems use these as a bargining chip to reduce the price further or have him make the improvements.