Updated over 5 years ago on . Most recent reply
Buying property with Bad tenant
Hi guys, I would like to ask for your advice. I am in contract to buy a Memphis house. The property is in good shape. The problem is the tenant. The tenant moved in in mid_October 2020. Since then, he did not pay December rent and has only paid part of January. Last week, he has paid off most of his arrears except $150. This a good sign. However, his source of income is very tenuous because he is a tax preparation independent contractor and his lawn care contract with the city of Memphis was temporarily suspended because of covid. It is supposed to start up again February. As you all know, there is an eviction moratorium due to covid until 1/31/2021, which may be extended. Is it true that you can't evict because of tenant rights if a new landlord takes over (covid notwithstanding)? Can I ask the seller to offer cash for keys now even if the tenant has paid off most of the arrears? It is very hard to buy a property now in a hot market like Memphis. Should I go ahead with the purchase despite the fact that I foresee this tenant as problematic?
Thanks for any advice.