Owner Occupant Needing Unit Vacant

6 Replies

I am currently looking to buy my first multifamily unit and having a hard time finding sellers willing to make a unit available for me to owner occupy. I am currently looking for a triplex or quad and most of the properties I am interested in are fully occupied. When my real estate agent contacts the listing agent they usually say that the seller is not willing to vacate a unit for me to occupy, which is creating huge barrier in my owner occupy strategy of starting out in real estate. I initially did not think that it would be a challenge to get sellers to work with me on this, but maybe I'm asking them to do too much... idk.

I am interested in suggestions for motivating a seller to render a unit vacant upon closing. Has anyone else faced a similar challenge? I need solutions :)

Fha states that you have 60 days to inhabit an oo property. Purchase a house and boot someone out. Simple enough.

I would look and then bring it up when you have a unit you are interested in. As part of due diligence you should get any leases. You can then  make it a requirement that the unit be 60 days noticed as part of the contract.   You might be doing the request to vacate prematurely.

Originally posted by @Colleen F.:

I would look and then bring it up when you have a unit you are interested in. As part of due diligence you should get any leases. You can then  make it a requirement that the unit be 60 days noticed as part of the contract.   You might be doing the request to vacate prematurely.

Hi Colleen,

You are right, my request may be premature. I was not aware that this can be written into the contract- my real estate agent definitely did not inform me of this option. I'm going to look more into this idea and revisit several properties that I brushed past  because of this issue. This is where knowledge and experience is important. Thanks for the info.

A seller will be hesitant to vacate a unit, if he has the right to, for fear you won't be able to close.  If an owner can vacate a unit, you'd need to put up some non refundable money once you're confident you can close, of maybe 3 months worth of rent, to make the seller comfortable.  I think CA has a minimum 60 day notice for tenants?

Well, you can't just "boot someone out", you are legally obligated to honor the leases that are in place when you buy. But you may be able to time your closing so that one of the leases ends at time that is convenient for you and you have time to give appropriate notice to the tenant that they won't be renewed (here that would be 30 days, I'm pretty sure). If the tenants are on month to month leases this is less of a problem

@Wayne Brooks @Jean Bolger you both are giving me a lot to think about. I definitely don't want to boot someone out but I definitely need to live in one. I like the idea of putting a few months rent forward to show that I'm serious and also like the idea of timing the leases to make for an easy transition. Things will be a lot easier if the tenants are on month to month agreements.

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