House hacking duplex

2 Replies

Hi I'm looking to get my first house hack and I found a duplex problem is that the tenants are both on a year lease. What's the best way for me about getting one of them to move out so I can owner occupy?

Hey Braxton, Great question!

In most states, there are tenant rights that won't allow you to remove a tenant solely to owner-occupy. The lease will stay in effect even when you buy the property and the tenant has the right to stay until the agreement expires. This usually makes the marketability of the properties less attractive.

It is generally not advised to try to assume a lease from a tenant especially if your state has favorable tenant laws. 

Also, consider that to a lender a 'Sitting tenant' is deemed to be a higher risk so procuring a loan could prove to be more difficult.

Hello Braxton, it's possible you can tell one of the tenants that you'll pay first and last month's rent, possibly a security deposits well for them for  another place to live in. If they don't agree, you'll have to honor the lease, good luck.