Hi all, I am a new investor, no deals done. I’m looking at a multi family in Phoenix Arizona area. 2 units come vacant, 2 with month to month tenants. I want the property vacant so I can fix up all units and charge more after rehab. Can I choose to terminate the month to month tenants with plenty of notice? No clue if this is legal or unethical. Thanks!!
@Samantha Griffin The first question you posted was about the Non-Renewal of a Month-Month tenant. Arizona Landlord-tenant law allows Non-Renewal of a Month to Month tenant. If Notice is given prior to the renewal date (generally payment due date), then the tenant is to be out at the end of that subsequent period. For example, I gave Notice to a Month to Month in September (Certified Mail or in Person), October rent is due, and they are to be out by the end of October. This is predicated on the lease in place, which could have a different notice period than my example. My example is based on the most commonly used lease in Arizona.
You'll have to reference your state laws, but most of the time you can just refuse to renew the lease. You probably have to (and should if not required) give them a 30 day notice so they have time to find a new place and move.
If you have two vacant units, why not renovate those with the tenants still helping pay bills? After renovation, you might be able to get those tenants to move into a new unit instead of kicking them out all together. Just a thought....
You'll have to reference your state laws, but most of the time you can just refuse to renew the lease. You probably have to (and should if not required) give them a 30 day notice so they have time to find a new place and move.
If you have two vacant units, why not renovate those with the tenants still helping pay bills? After renovation, you might be able to get those tenants to move into a new unit instead of kicking them out all together. Just a thought....
Yes very true I have thought of that. Problem is im hung up on the cash out refi part. It’s a cash only offer and it’s a 4 plex which is actually a manufactured home! My worry is if I fix up the 2 units how much appreciation can I get on a manufactured property (the land is being sold with the property) Will I be able to pay my hard money lender back. Not ever doing a deal I’m stuck in analysis paralysis if this is even a smart deal. also wondering why someone is selling a cash flowing property asking for all cash. Is that a red flag that they can’t even get a loan from the bank on it sorry for the rant! Can’t seem to get a handle on how to go about this
@Samantha Griffin The first question you posted was about the Non-Renewal of a Month-Month tenant. Arizona Landlord-tenant law allows Non-Renewal of a Month to Month tenant. If Notice is given prior to the renewal date (generally payment due date), then the tenant is to be out at the end of that subsequent period. For example, I gave Notice to a Month to Month in September (Certified Mail or in Person), October rent is due, and they are to be out by the end of October. This is predicated on the lease in place, which could have a different notice period than my example. My example is based on the most commonly used lease in Arizona.
@Samantha Griffin Your 2nd question regarding long-term financing is a very good one and one you should go into with eyes wide open. Some properties are difficult to finance, some are not possible with traditional lenders. I was working on a 13 plex recently, and no one wanted to lend on it, so we never executed a purchase offer on the property. Yes, we might have found hard money, but very few of these work long-term with hard money.
Manufactured homes, especially older ones, are very difficult to finance. Sometimes, they are cash only. Please do your homework on this property before pulling the trigger. Find out how old the units are, when they were manufactured, whether they have HUD plates, etc.
I'm a huge proponent of BRRRR and have seen it used to significant advantage and reward with the right property. This one may not be the right one, you need to find that out as soon as possible to protect yourself.
Good luck, and congratulations on having the courage to take the steps! Many investors never pull the trigger, and you are well on your way, that is clear.
@Samantha Griffin Your 2nd question regarding long-term financing is a very good one and one you should go into with eyes wide open. Some properties are difficult to finance, some are not possible with traditional lenders. I was working on a 13 plex recently, and no one wanted to lend on it, so we never executed a purchase offer on the property. Yes, we might have found hard money, but very few of these work long-term with hard money.
Manufactured homes, especially older ones, are very difficult to finance. Sometimes, they are cash only. Please do your homework on this property before pulling the trigger. Find out how old the units are, when they were manufactured, whether they have HUD plates, etc.
I'm a huge proponent of BRRRR and have seen it used to significant advantage and reward with the right property. This one may not be the right one, you need to find that out as soon as possible to protect yourself.
Good luck, and congratulations on having the courage to take the steps! Many investors never pull the trigger, and you are well on your way, that is clear.
Thank you so much! this makes more sense why it would be an all cash offer