I bought a house with the intention to flip. There are tenants living in it. The house wasn't properly maintained.
The seller did not furnish a contract which was already expired.
I intend to flip the house as quickly as possible since I have a hard money loan.
What is the best way to handle this deal?
Draw a month-to-month contract with a 30-day termination clause when I have a buyer?
How and when does the security deposit get handled?
Should I convince the seller to settle the security deposit now? (Especially before I start repairs).
How does that get handled?
I wouldn't want to get burned by a tenant that will not move because of a previous contract.
This is a Florida property.
Anything else I need to be concerned with?
I'd say it would be risky and very difficult to rehab and flip with a tenant in the property. I think you should have the seller terminate the lease, although you say there isn't one, settle the deposit and have them gone before you close. Just my opinion.
Its just my .02 cents, but with having a hard money loan and wanting to do a flip. I would pay the tenants to move on and finish the flip. Time is money, you don't want to drawn into a long possible eviction.