New to Real Estate · Clarence, NY · Member since 2021 · 2 posts · 0 votes
I found a property in a very good area at below market value. It is a double unit, each 2 bed 1 bath. It is outdated and has tenants in it. They have been there for 10 years +/- and have a good track record with paying rent. The problem is they are paying 50% of the market rent for the area. The numbers show that it is a no brainer to buy if I was to evict, update and rent. Has anyone been in this situation? Without the eviction I would netting about $75 per door.
Rental Property Investor · North Palm Beach, FL · Member since 2018 · 2k+ posts · 1k+ votes
4y
@Account Closed
I have been in this situation a few times and usually the tenants will leave themselves. You really want to avoid an eviction. You can let the tenants know that you will be starting to renovate the property, starting with the exterior. I doubt these tenants are on leases so you can then resign them on leases with a rent increase. Also, if they want to move, give them 30-60 days to find a new place without signing a new lease. Offer cash for them to move or for them to move sooner. There are a number of ways of doing it but I would avoid having to evict them.
New to Real Estate · Clarence, NY · Member since 2021 · 2 posts · 0 votes
4y
@Charles Carillo
Thanks for the tip. I am still learning the terminology and believed I misspoke with using evictions. Have you ever had a situation where you talked to the tenants about needing to increase their rent prior to purchasing the property and trying to negotiate a deal with them? Or do you typically send them a letter with the increase rent to market value and see if they stay?