I am in a due diligence period on a park which cashflow-wise is a great deal. The current owner acquired the property through a lien and only has owned it for a few months and before that it was bank owned for about 5 years.
All of the homes are owner occupied by lower income people with a mix of them receiving public assistance. Some homes that have been bought and sold without the new owners signing leases. Apparently during the time it was bank owned it basically was not managed at all.
If a tenant that hasn't signed a lease and stops paying rent, will I be able to evict since there is not a lease? Also I have heard that most of the home sales have been very informal and little if any paperwork has been officially signed.
Any Advice would be much appreciated! (I am meeting with an attorney soon to get their opintion)
Best I can guess is during DD interview each resident and get them to sign an estopfel letter capturing what they remember and agree to. Then that's what you decide to go forward based on or not. Good luck. Then if they agree they where supposed to be paying rent,,, and they are not and say they won't, then evict and you'll be convincing the judge. Seems a step you'll face regardless (presenting what doc you have to the eviction judge).
Google "Wisconsin Residential Landlord-Tenant Law" and check-out the info on the Wisconsin State Law Library website (wilawlibrary.gov). It appears to be a comprehensive resource.
Post purchase you'll have a bunch of expense fixing the bad MH titles that no doubt the bank never got moved into their name from the prior foreclosed owner. Buying from the current owner, your purchase contract should say: all MH titles are presented at closing or else a $2k bond is posted to recover lost titles. Buying from a bank, you'll have to deduct cost of fixing the MH titles from the purchase price. Tell them that there's this problem.
Thank you, everyone for your responses!
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