Potential 4 Plex Purchase

[Sandip Patel]

Hi Everyone,

I hope I am posting in the right forum. I have the opportunity to purchase a 4 unit apartment building off market. Based off the rents presented the price seems fine, after asking further questions I was told there was 1 tenant that they started the eviction process with. Now if I was to take it over I wanted to change the management company and convert it to section 8, if I do this it may restart the whole eviction process but if I do not do that the current management company will want me to sign a new contract. Evictions here in Detroit can take a long time, I have been told potentially 6 months to a year. My questions is when evaluating the purchase price of the property is it normal to take into account the tenant that is not paying and the cost related to that eviction and potential damages along the way of the eviction? 

Thank you,

Sunny