A lot of people are on the look out for former rental homes that they can convert into an owner-occupied home. Not all former rentals are good ideas, of course, but many people recognize the fact that former rentals are cheaper than others, particularly because the sellers may be more motivated to sell than others.

At times, small landlords enter into the rental business ill-prepared for the challenges that this will inevitably present. Some people think that they'll just buy a home, put it up for rent and their rental income will help them pay the mortgage. That way they're building equity on their property while enjoying a little income. This could work if you also take into consideration that you may need to have some capital set aside so that you won't run into problems should you have difficulties renting the house out or when your tenants default in their rent payment. Small landlords who don't have much capital stowed away for such eventualities may be in for an unpleasant surprise which will make them want to just sell the property.

Others are unprepared for the fact that tenants may need to call them often to complain about one thing or another. Or they may realize that being a landlord just isn't the right decision for them anymore. Some have ran out of tax breaks on the property and so the best route for them is to just sell the property and acquire a new one. Whatever the reason is, you'll find that most landlords who are selling their properties are motivated sellers. Provided you find a great property to buy, you'll find that negotiations may go smoother than what you're expecting. Let's say for example that you're looking to break into the Long Beach Island real estate market. Looking through Long Beach Island homes for sale will probably show you available formal rental properties to buy. You'll find that landlords will be more willing to negotiate with people who are looking to make the property owner-occupied rather than negotiate with fellow landlords.

Here are a few tips when considering buying former rental homes:

1. Inspect the house without the tenants present - You won't get an objective feel to the house if you walk through it with tenants still in it. Some will blow the issues of the home out of proportion just to discourage you from buying it. It would be better to schedule the inspection when the tenants are out.

2. Take note of necessary repairs - Of course you'll need to have the house inspected thoroughly, but an initial walkthrough will reveal if the house has cosmetic damages that need to be repaired. As such, just take note of them and you can factor these things when you're already thinking of what offer you are going to make to the seller.

3. Don't skimp on the inspection - This is already standard for any house that you purchase. Have it inspected, and have them inspected properly. Standard inspection does not include inspections on mold, lead, and other harmful chemicals so you may want to consider adding them to the things you want inspected.