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Reed John T Reeds books, one of the only legit guys in the game, or listen to gurus who sit you in a bud for 20k
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The agent will ALWAYS say the tenants are fine.
Saying that they pay cash was probably done because it’s impossible to trace.
How long is the existing lease in place for? When does the late fee kick in? What are the state laws around eviction?
Basically I’d assume that they aren’t paying rent on time, and I’d have a plan in place to get them out ASAP and put my own tenants in. If that’s your expectation going in, then them paying any amount of rent exceeds your expectations.
Run a credit report on them and do your own DD as they were new and see if they qualify. Huge risk
That’s too much work to do for existing tenants. What I would do is plan in advance of how you’re going to deal with a transition. I would never accept cash from tenants. But there are options like asking for bank records, etc., but if the owner is accepting cash, he’s likely commingling his funds with those from the building. There is a risk here, so look at like what it will take to evict tenants if people don’t pay. But, that said, in the multifamily context, there is never any guaranty that people won’t stop paying rent anyway. So the paying cash thing really doesn’t mean much even if their checking accounts were automatically debited if the tenants just decide to stop paying.
Even if they pay in cash , there should be a deposit record . Never believe the agent. If they cant prove tenants been paying I would only move forward if it is in a state that the laws favor the landlord, so you can evict if need be. No NY MA or CA to start. You will spend forever trying to get them out.