7-plex deal - Posted by Dawn

Posted by Bud Branstetter on December 28, 2000 at 24:08:21:

You use a contract for commercial property. It will likely have a clause that prorates the rents to you. You can also put in the contract that the former owner is responsible for collecting rents owed. Be cautious on multi units. Review all leases. Go over their books and tax return schedules for the last couple years. There may be laundry, payphone, coke machines, garbage service etc. to be concerned about and address in the contract.

7-plex deal - Posted by Dawn

Posted by Dawn on December 27, 2000 at 07:01:42:

I’ve been a lurker on this site for some time now. I’m happy to finally contribute to the discussion even though it’s only to ask a question. I’ve primarily bought single family residences, but I’m tired of having to pay out the entire mortgage when the houses are vacant. Now…

My husband and I are looking to purchase a 7-plex. I’m thinking that the best day to close would be, say the 2nd of the month. That way we’ll get the security deposits and rents for the month but won’t have a mortgage payment for 30 days. Would you agree that this would be a good date? Any better ideas? Also, what happens if one of the tenants did not pay rent that month, who would be responsible for collecting? Me, considering the plex is mine after the second?

Thanks for your help.