I want to make an offer on an occupied house. Single Family. Landlord is hours away and tenants seem to be behind on rent. He hasn't moved to evict yet and it's on the MLS. I could offer what I think is fair, and set our close date to . . within 5 days of home being vacated by tenants. Lease has expired. They are month to month. They stated they are looking for housing.
Or, I was thinking that I could offer less and take the tenants along with the house. I'd offer cash for keys. My purchase price would reflect that - I'd probably offer them $1000 and shave my offer price to seller by another few thousand. I'd have to make my offer contingent on getting the M2M lease paperwork so I was sure I could give them the 30 day notice to vacate. This is risky and I fear I'm getting in over my head. But, I'm tempted.
Tenants 'appear' nice, but already full of baloney. I imagine they have a sweet slow-paying deal right now. House has to be renovated and it's under market rent. They couldn't stay. Worst case scenario, I'd have to give 30 day notice.
Anyone actually used this strategy before to buy at a better price? I've seen it mentioned here. Thanks.
Yes, by taking the house "as-is" with the bad tenants you're providing the seller a service and should be compensated for it (lower purchase price). If they want more money, let them get rid of the tenants. I wouldn't close until the property was vacant if that is the owner's responsibility. You could offer cash for keys (good strategy) or just do the eviction. Either way, it shouldn't take too long.
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