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There are certain dangers in existing leases with existing tenants when you are contemplating the purchase of a rental or single family home (SFH) property. While the majority of investors buy single family homes to wholesale, rehab or wholetail, many other investors look at an income stream from a property as their goal.

In a purchase of a property without a tenant in the property, the closing is straightforward. The taxes are accrued through the closing date and any other prorations are settled at the closing. However, in the closing of properties that have tenants, other considerations become very important.

The first

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