First Owner Occupied Multifamily

[Emily Shrub]

So this will be our first ever house and we are choosing to buy a multifamily and to live in one of the units. I'm wondering if all the units are full and we have to occupy it in order for the financials to pan out. What's the least painful way to get a tenant to leave the unit we want to live in? Aren't evictions challenging and time consuming?

[Benjamin Aaker]

First, make sure your bank will finance your plan. If you want an FHA loan, your multifamily needs to be 2-4 units.

Next, make sure you look over all the leases before purchasing. When in doubt, have an attorney do this. You won't have cause for eviction simply because you want to live in a unit. On the other hand, if the tenant is month-to-month you can send them a letter to non-renew with notice appropriate in the lease (usually 30 days').

Explain in person to the tenant why you will be asking them to leave (e.g. you have to, in order to move in, in order to keep your mortgage on the place). Be polite. You might even offer to help them find a new place or move but you don't have to.