FHA on first househack but tenants?

[Cody Clark]

I'm looking at investing in a duplex. It's (2) 2BR 1BA units that are currently rented until Aug 2020, and Feb 2021. If I'm to utilize an FHA loan for this property I understand it's to be owner occupied for the first 12 months at a minimum. With the current tenants in place, do I give them the boot when I take ownership of the property? Or am I able to let them live out their leases and stay at my current residence? Thanks in advance for any insight.

[Brett McManus]

Hi Cody,

I am in a very similar situation with a duplex I'm closing on this upcoming week. Best piece of advice I have is if it's a deal you do not want to pass up, consider a cash for keys offer.  

In my case I was allowed to contact the tenants after the property went under contract. One of the tenants was on their first year while the other were on their 3rd year currently committed to a 2 year lease. I ended up making a cash for keys offer to the tenants who had been living there for a shorter period of time which was accepted and an agreement is now in place with the seller with writing that the unit must be vacant by closing (Which it is). 

Just how I handled a very similar situation!