Inheriting a problem tenant after closing

[Damon Diddit]

I currently have this property under contract, expected to close within 3 weeks. There's a tenant that's month to month, rent is at least $800 below market rent, so I told the seller I need that unit to be vacant. He delivered a 60 day notice to quit, to tenant. Here's a little background on Tenant situation...has 2 or 3 young kids, an adult sister, an aunt with her male friend and the lessee has a male friend, that all appears to live in the apartment but aren't on the lease. When entering the apartment, it just feels like a house full of squatters. The living condition is terrible as the apartment is poorly maintained by tenant and poorly managed by landlord [seller]. From my understanding, no one is employed, they are somehow current with the rent, but they are definitely not someone I would offer a new lease...not even at market rate.  There's no way I can keep the house above water with that rent let alone consider any positive cash flow...so I need them out! To this point they have been progressively uncooperative, which has me really reconsidering the deal. I have no experience with tenant evictions and after some due diligence, it could take at least 3 months, until... depending on the judge. Also New Jersey is a Tenant friendly state. The property itself is a good deal, there's a lot wear and tear in apartment so will definitely need some serious renovation work, but mostly cosmetic. If I can get around this situation, it would be worth carrying some costs for a couple months but if eviction prolongs, a good deal will go bad quick. Does anyone have experience with tenant evictions in Newark? Does anyone have any suggestions, advice or a strategy to share with me? Any comments is much appreciated. 

Thanks in advance

[Andrew Syrios]

It's probably just worth walking away on this one unless you got a really good price. If they're going to force an eviction, I would want either 1) to just wait until it's done and keep extending the contract (if you're in no rush at all) or 2) ask for a substantial price discount to deal with it yourself. Ask an attorney for the cost breakdown, factor in holding costs, assume they'll do more damage on the way out and then ask for a bit more for the headache.

But again, especially with no experience with evictions and it sounding like a mess, I would be very tempted to just walk if the tenant is not going to cooperate.