Looking for Duplex in Pascagoula for Owner Occupying...vacancy?
We are VERY new to this, having only read Rich Dad 3 months ago to start the journey. My plan is to start with a duplex (though tri or quad would work also), and are looking at the Pascagoula, MS area (MS Gulf Coast). We live 3.5 hours away, so to qualify for owner occupancy and the low FHA down payment, we are looking to put my 21 year old son on the loan. He is heading into long haul trucking, and doesn't care where he lives, since he won't be home much anyway. Then we hope to do it again 366 days later!
My plan of attack is to send a letter to every duplex owner in the area and offer to buy the property. What I'm wondering is if I need to only be looking for properties with a vacancy? He can't very well "owner occupy" if it's already 100% rented. Is it ethical to buy a property with the intent of kicking someone out?
Congrats on starting your journey! Everyone has to take that first step at some point, and this is a great idea/first step!
To answer your question, you do not need to look at only vacant properties. Removing the tenant can be part of any given deal you strike up with the current owner, and delivering the property vacant to you can be one of the terms. In addition, even with an owner occupied loan, the loan companies will give you some lee-way with tenants occupying your new property, and allow them "x" amount of time to vacate post closing (not sure on exact timeline).
If you chose not to make delivering the property vacant as one of your terms, you can always give the tenant in your new property a 30 day notice to vacate as soon as you close. That is not unethical, that is part of the business and part of real estate.
Hope this helps!
@Pepper Bradford congrats on taking the leap and having the motivation. Like @Lake Lutes mentioned it doesn't matter you can handle it in some way. However one thing I would suggest is thinking about your goals and timeline. If you are wanting to get started it might be better to go an easier route with an on market property. Finding off market deals can be a hustle and cause burnout due to the rejection rate. Don't let little things get in the way of your big goals!
Get after it!
Thanks for the great advice! I have to admit I didn't know how well it would go over, telling some tenant "Hi, I'm the new owner, and I need your place, so get out!" so I like the idea of making that the current owner's problem.