A lot of people don't realize that you can actually buy a home while it is currently occupied by tenants, whereas here at Dallas Luxury Realty we actually specialize in this type of investment sale. We lease and manage thousands of rental properties in the Dallas area, and have a constant supply of tenant occupied homes available that are normally NOT ADVERTISED to the public. If you're thinking about investing in property, read on below to find out why a tenant occupied home may be the right choice for you.
1) Tenant occupied home sales are EASIER
This may sound strange, but over 70% of our tenant occupied homes never hit the market when we list them for sale. We normally sell them in-house to our preferred investors and landlords, which means we don't have to upset tenants coordinating dozens of showings, we don't need to put a lockbox on the home and often never even put homes in the MLS. As a brokerage this saves us time AND money, allowing us to reduce our fees, handle both sides of the transaction in-house and pass the savings onto out clients.
2) Cashflow starts the minute your close
Think about it - normally when you're buying investment property you have to wait 30-60 days for closing (during which time your money is tied up), then go into the home and do at least a deep clean and touchup renovation, then list the home for rent (hope that you get full price), pay a broker to coordinate showings and lease the home and hopefully start cashflowing within 30-60 days. That's up to 4 months with your funds tied up and no profit. With a tenant occupied home you start cash flowing the day that you close, and you already know exactly how much you will be making a month and if the tenants have a solid payment history.
3) Tenant occupied homes are CHEAPER
How? Well, again, a lot of landlords simply don't realize they can actually sell their homes BEFORE the lease runs out, and especially for those that need cash immediately when we approach them with a sales opportunity they jump at it. Also, because we RARELY have to list their homes in the MLS, we reduce our fees and save everyone money. Plus there is ZERO commission paid to rent out the house as it's already occupied. Also, if you purchase the home off season (think October-March) then you can actually get a tenant paying Spring/Summer prices for a home you closed on in the Winter, which is the cheapest time to buy.
If you would like more information on our tenant occupied homes, please fill out the simple form below and we'll send you a list of available homes.