How to insure shortsale deal with a tenant?

4 Replies

I am considering to buy a shortsale in Baltimore from a wholesaler where he will close as A to B and then my deal with him will be B to C. Problem is that there is a relative of the former owner who lived there with the owner before they passed away. I am converting the property into a rental and I can not keep them as renters. What type of insurance do I need to get as I will need to evict the person first and then do some rehab to make it a rental?

As far as insurance @Tim Yusubov , you will get general homeowner's insurance. Are you buying the property with the tenant in place? Or is it contingent upon the eviction? If you are buying it with the tenant in place, you will get regular homeowner's insurance and then be responsible to evict the current tenant. 

Thank you @Dan Barli. Yes, I will be buying with the relatives still living at the property and it will be my responsibility to evict them, or most likely cash-for-keys. What kind of tenants are they from the legal perspective? They don't have an agreement nor they will have ownership of the property. Just trying to figure out how long they can stay there in the worst case scenario.

@Tim Yusubov I would think standard insurance for rental properties is what you want. A good agent can guide you. Look up Steve Luray of Luray insurance. He won't be the cheapest but he knows his stuff.

Thank you @Ned Carey, I will. So far, I got a quote from Adam Knoll and his team. They do not cover for such cases; "I have confirmed that we will not have any options while you have a tenant in place that you are actively trying to evict."