First time buyer, FHA, looking to buy duplex with tenants

[Cassie Gray]

I have a buyer looking to purchase a duplex that has tenants already. She's an FHA home buyer so, she'll need to occupy one of the units. The tenants are on a month to month lease. Her big question...who to tell they have to go. What are the steps she needs to take? It's hard to give advice when it's situational. Should she give both tenants notice and start with new tenants on her own terms?

[Greg H.]

FHA guidelines require her to intend to occupy one unit within 60 days from closing. MTM leases are perfect as this gives her the choice of which unit. Additionally, it gives her the opportunity to have the other tenant execute a new lease( with or without an increase) with 30 days notice