Updated about 1 month ago on . Most recent reply
Buying Multi-Family - Negotiating a Home with Existing Tenant
I would like to make an offer for a multi-family home in Queens, NY. The home has one tenant that is not cooperating and is being evicted.
How much lower can I go on the offer price due to the tenant? What are some strategies to make this more favorable? I've read that I can potentially ask the seller to pay the eviction fees, renovation costs, etc. until the tenant leaves.
Other strategies I've read is to have the seller pay the lost rental income until the tenant leaves.
Anything other ideas? Thanks!
Most Popular Reply
#2 House Hacking Contributor
- Real Estate Agent
- Los Angeles, CA
The challenge is you don't actually know the cost. If the tenant decides to be difficult, this could take literally years before they get out.
Here is a potential strategy (I have not used it yet):
Make the purchase contingent on the tenant moving out prior to the close of escrow. Once all contingencies are released on your end, have your earnest money deposit released early to the Seller so they can use the money to buy the tenant out. Sometimes the issue is the Seller doesn't have the money. Now they would.
For 99% of my clients, I don't recommend they buy a property with bad tenants in place for this very reason.