Baltimore Investments – Should I buy Vacant or Tenanted
The age old question when buying any property for investment is should I buy a property with tenants in place already or a vacant property and place my own tenants ?
Since Global Investments have launched in Baltimore it is a question that is coming up a lot for the Manchester based firm as there are a lot of excellent houses available on the market that may need minor cosmetic work but obviously come vacant and not with tenants in place.
We asked Global Investments incorporated CEO Mike Moodie his thoughts on the matter. “ Well, its not the easiest question to answer as there are pluses and minuses for both sides, so as an investor you need to weigh these up before making a decision. The majority of the enquiries that we receive would normally be for properties that have an immediate income which means that they would want properties that already have tenants in place. In my opinion as long as the tenants have been vetted by the management company and the normal checks have been done on the rent history etc… then these types of tenanted properties make a great investment. “
So if this is the case then why would an investor want to buy a property that is vacant? We asked Mike the same question? Mike added. “ Tenanted properties are great and like I said as long as the checks have been done will provide a great investment but there is an argument to say that buying a property that has been freshly rehabbed allows the investor and the management company to place a fresh new tenant on a long term lease. The only down side to this is that if may take a few weeks or even a month for the management company to do the correct checks and then place the tenant. If we look at the big picture our investors are buying these homes for 5-10 years so a month to place an excellent long term tenant is not really a big deal. I believe this to be the case even more with our Baltimore product as we are getting a lot of excellent inventory but some of the houses need work. We have an excellent team of contractors that basically do a walkthrough on the home before we market it. The works are included in the price of the property so our buyers are getting a newly updated home which is ready and easily rented to new tenants on long term rolling leases. “
Global Investments incorporated have been providing USA turn key properties for the overseas investor now for 7 years and have sold more than 4,700 homes in many cities, Detroit, NY, Florida and Ohio. As a company they provide a one stop shop for the investor, delivering on the ground management and an unrivalled after sales service.
We asked Mike how important the management is in both of the scenarios. “ Well management in my opinion is the key to these investments, as without good management a great property can become a bad investment. We have been working with a few excellent management companies in all the states that we work in for some years now. In both of the scenarios management will play an important roll as with a tenanted property we would ask them to check all the lease agreements and rent rolls and history of the current tenants to ensure that the return for our investor would be immediate. In the case of a vacant property, well its the management company that would be sourcing and vetting the new tenants on behalf of the new owner. So in both cases the management does play a vital roll. As a company we strive to provide the best quality turn key property both tenanted and tenant ready in all of the areas in the US that we sell homes. “
To see available turn key and tenant ready homes in Cleveland, Baltimore, Detroit and Kansas please contact any of the team at Global on email@example.com