I just saw a triplex, that meets the 2% rule in an area where it's hard to do. It seems like a great deal, I have two questions.
1. I would want to evict two of the tenants. They are already on month-to-month leases, so legally this is not an issue. How hard is it to evict tenants?
2. I am hesitant about the triplex. I think reselling it would likely be challenging, since the buyer pool is very small. Should I care?
Thank you! :)
What kind of condition is the property? Did you have it inspected? I found 5 unit property recently that exceeded the 2% rule in Clarksville TN but had so much hidden damage it was a no go. That was the best $400 I spent on inspection fees ever.
As to tenant evictions it depends on area and state how easy it is to move problems tenants out.
Some states it is not a problem others a major nightmare. Read an earlier post I wrote about evicting a former professional tenant in CA
anything under 4 families stink. go big :)
I would ask the seller to evict them prior to purchasing.
Resell doesnt matter if it works as a longer term play.
If I found the write multi-plex that worked with my "goals" that I would go for it. On the other hand, I like to be able to resell my properties. It is important to me tha the places increase at appreciation over inflation.
Honestly it really comes down to your goals needs, and views.
I think you should buy it and reselling a triplex won't be a big issue. I would say one thing here that do take a legal experts opinion as it will be a long term investment for you.
Could you do "cash for keys" with them?
I just talked to a lawyer yesterday and they charge $700 for an eviction. Plus if you miss a months rent, they damage the property or any other eviction issues.
Hard to pay people like them but if it saves you money its worth considering.
Thank you everyone for your comments and advice!
@Martin Scherer Thanks for the advice. We're having it inspected on Wednesday.
@Jerry Padilla Have you ever required a seller to evict a tenant before settling a purchase? This would definitely push the settlement date, but could be worth it.
@Aaron C. Great idea! Thanks
I have not, but wish I would have. I bought a house and inherited terrible tenants - that required me to treat the house for mice, bedbugs, and cochroaches. Now I ml know why the house was a good deal at the time. Also they constantly called me about stupid things and argued with each other all the time....... Now we have great tenants in the house and no more bugs! So it is all good now.
@Jerry Padilla -- Yikes! Good to know. We already know there are cockroaches in one of the units. I'm actually mistaken about having to "evict" the tenants. They are on a month-to-month verbal lease, so we will need to terminate their tenancy. We asked the current landlords to write up a letter describing the lease situation as an addendum to the contract. Our local mentor advised that if we have to go to court, as long as they can't produce a current lease, we should be able to get them out in a worst case scenario...
Anyway, thanks for the advice about the infestations. Bleah!
@Kimberly Ashkenazi they can be difficult to get rid of as well.
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