Question on House hacking

3 Replies

Hey y’all,

I got a hypothetical situation. What if your plan was to buy a two family apartment that you would live in and house hack, but both residences are occupied by tenants who the seller had put in place. What would be the best course of action to get at least one of the tenants to leave so that you can stay in that place? To use an FHA loan you got to live in the property for a certain amount of time so how does this work if there are already tenants paying rent there is my questions.

Thank you

@Woodly Tisme . Well you have to live there for a year otherwise you’re committing mortgage fraud, which is a no-no. (Unless you enjoy prison!).

So the easiest way would be to make your offer contingent on one of the units being vacant at closing. If it’s not vacant at closing, then you have to get one vacant, and if they both have leases that don’t end anytime soon (not month to month), then you’d have a problem.

I came across this issue recently. I wasn't able to find a great solution. I believe that you inherent hose leases and are obligated to fulfill them. However, you can offer to buy out the tenants in exchange for ending their lease early. It may be a sweet deal to have a few months rent paid at a new place. That was going to be my tactic. Another option was to look into local housing authority assistance or laws.  I look forward to hearing more possible solutions! Good luck!