Just been thinking lately about investing in some commercial property, but here's the thing... say you found a great building that's already got tenants in it. Seems like a sweet deal at first, right? Instant cash flow and all that. But then I started wondering, what if these tenants have leases that are way below market rate? Or worse, what if they're the kind of tenants who constantly miss payments or cause trouble for the owner?
I'm guessing lenders would look pretty closely at this kind of stuff before approving financing, but how does it actually play out in real life? Would the bank expect me to renegotiate leases before closing, or maybe factor in some potential vacancies? I mean, it seems like it could really mess with your numbers if you don't know exactly what you're getting into.
Curious if anyone here's been through something similar and how you'd handle this kind of situation.
