How to make the deal possible...

4 Replies

So I'm looking to buy a triplex using an FHA loan. It is currently fully rented out with all leases renewed until june-july 2018. FHA requires that we move in to the property within 60 days. The current owner doesn't even want to ask any of his tenants if any of them are open to leaving before their lease is over. I know that the current owner wants to get out of managing the property himself. Would I have the legal right to give notice to one of the tenants if I was able to buy the property? Does anyone have any creative ways to make the deal work? Any advice would be appreciated. Thx.

I don't know of a way to terminate a lease without cause. You could make your offer contingent upon a tenant vacating ... then offer a tenant (or all of them) cash to move out. First to accept the buyout wins.

@Eric Bradeis Look at this from the sellers point of view. He cannot break the lease without cause. If he pays cash for keys and creates a vacancy and your financing falls through or something else happens and the deal fails he will have paid to create his own vacancy. Most people won't do this. Check with your lender. Maybe they will allow the contracts to run out before they implement the 60 day requirement. @Chris Mason is far more qualified to help you with this part than I am. RR

Read your state landlord tenant regulations. Do they allow a termination of a lease for owner occupancy. Most do, some do not.

Learn all your state regulations before you start your business. It is your responsibility to know the laws as a business owner.

Originally posted by @Thomas S. :

Read your state landlord tenant regulations. Do they allow a termination of a lease for owner occupancy. Most do, some do not.

Learn all your state regulations before you start your business. It is your responsibility to know the laws as a business owner.

Good advice. The NJ Anti-Eviction Act might be relevant. Here is the text...

2A:18-61.1 Grounds for removal of tenants

No lessee or tenant or the assigns, under-tenants or legal representatives of such lessee or tenant may be removed by

the Superior Court from any house, building, mobile home or land in a mobile home park or tenement leased for

residential purposes ... except upon establishment of one of the following grounds as good cause:

 ...

(3) The owner of a building of three residential units or less seeks to personally occupy a unit, or has

contracted to sell the residential unit to a buyer who wishes to personally occupy it and the contract for sale

calls for the unit to be vacant at the time of closing. 

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