Alright so I'm working on my first deal after lots of reading on BP. We were to close on the duplex property December 15. Both units were occupied. The seller rescheduled closing until Jan 6 due to the holidays. On Jan 5 the seller tells me they will not convey the security deposit for the one side as the tenant hasn't paid November or December. I'm not upset about this. The tenant is not someone I would have approved so getting them out is fine. I am upset the seller waited until 24 hours of closing to tell me this. I freaked out and postponed closing until the dead-beat tenant was out.
The tenant is packed up and moving. They have couches and beds there still. Tenant claims she has a truck scheduled for Jan 21. The owner/seller sent and unconditional quit notice on January 12 giving January 22 as the final date before filing eviction papers with the court.
The bank is pressuring to close. The seller has offered a January 24 closing. They have offered that if the tenant isn't completely out at that time they will convey the security deposit to me since I will have to deal with the eviction.
What do you guys think? Should I close and immediately start the eviction process if she is not gone? I hate to lose funding and have the deal fall apart. I know starting with an eviction isn't ideal but it is a deal breaker? Thoughts???
I would consider cash for keys. Tell the tenant you will pay for the truck if they move this weekend. You might even consider renting storage facility for one month for them.
I would be concerned about the bank as they may pull the financing at any time. I would consider the seller in default at this point and would be playing hard ball with him about the tenant security deposit. You need to be concerned that he doesn't consider you in default if the bank pulls about and then try to keep the Purchase deposit or not release it if a third party is holding it.
Ned Carey, Crab Properties LLC | http://baltimorerealestateinvestingblog.com/
Not a deal breaker. Get it closed ASAP - more delays are risky.
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