When looking to invest in real estate, one of the most beneficial properties available is a tenant-occupied rental property now available on Auction.com. This type of investment can come with a multitude of benefits but like with any investment, you will need to ensure your strategy is aligned with your goals. If your goal is to expand your real estate portfolio, generate cash flow, and maximize returns, then a tenant-occupied rental investment property may be exactly what you are looking for.
There are pros and cons to any investment but for this article, we will speak to the benefits of buying a tenant-occupied rental property through the Auction.com platform. So, what are the benefits of purchasing this type of property at auction? To put it simply, there are many:
- Many properties with month-to-month leases already in place
- Buyers can keep, renegotiate or terminate the lease*
- Available financing makes it easier for all investors to participate in rental auctions.
- Interior access allows you to see the inside of the home before you decide to bid
- Online auction platform provides opportunities to invest in multiple states and counties
Month-to-Month-Leases Already in Place
The rental investment properties on our platform come with month-to-month leases already in place. The lease type and terms will vary from one property to another, but nearly all Auction.com rental properties will have tenants that are currently in a lease. The buyer of the home in the online auction is required to abide by the current lease terms and local tenancy laws for renewal, renegotiation or termination of the rental agreement. Lease terms and rental amounts can be found on the property details page.
One of the top benefits of investing in tenant-occupied rental properties is that they can provide immediate income. Properties that generate income will help provide financial stability for you, the owner, and can drastically improve your financial situation. Monthly rental checks will help to offset monthly expenses as well as help with updates and renovations to the property. And, any unused money can help to grow your savings. For example, if you rent the property for a full year at $1,000 a month, you will see a $12,000 increase in income for that year, and that’s just from one property. Doesn’t that sound amazing?
Renegotiate or Terminate the Lease*
The rental investment properties on our platform do come with tenant in place, but once the property is yours, what you do with the property is at your discretion assuming all terms of the lease and applicable laws do not interfere with your plans. Keeping the tenants in the property is ideal for immediate income but if your strategy is to fix and flip the property, you will need to evict the tenant before you can proceed. For termination, you must give notice as required by the lease specific to non-renewal at lease expiration or give appropriate notice per applicable law on month-to-month leases. For state-specific eviction laws, visit this website.
Available Financing
Investors who are looking to buy a rental investment property from Auction.com will also benefit by being able to apply for financing via a variety of funding options. When financing is available on the property, it will be identified on the property details page. For example, Finance of America is one of our financing partners and their information is featured on our property page with additional information found here.
Please note: You can also view important lease documents, such as an addendum to the current lease, current rent rate and whether the property has a buyer’s premium, all from the property details page. So when you find a property you like, be sure to save the property by selecting the star icon at top and spend some time reviewing the purchase requirements.
Interior Access
Before you bid, having interior access enables you to conduct a more thorough assessment of the property’s true condition and value. Each rental investment property on our website has a designated listing agent who is available to show potential investors the property. They will arrange for the viewing by appointment, but please refer to the property details page for instructions on gaining interior access to a specific property. As these properties are occupied, please do not disturb or attempt to contact the tenant until after the close of escrow.
Invest in Multiple States and Counties
No other company in the industry offers a more robust online marketplace of investment properties than Auction.com. We have been able to do this through our innovative technology platform that allows novice and experienced investors the opportunity to bid on rental properties throughout the United States. No longer are the days where you have to travel to the property location to bid on, or purchase, an investment property. With Auction.com, the process is completely online from bidding to contracting to closing. If you live in California and want to invest in a rental property in New Jersey, it can be as easy as bid, win, close.
Investing in a tenant-occupied rental property is a great investment opportunity, but it can come with uncertainty if you are new to real estate investing. If you have questions or concerns, we encourage you to attend one of our many upcoming learning events and/or call Customer Care at (800) 793-6107.
Join Auction.com as we continue to innovate the nation’s leading online real estate marketplace. Let’s go beyond the bid!
Want more Auction.com? Follow us on LinkedIn for the latest product updates and company news.
*Subject to the terms to the lease and applicable laws
