Buying a fix & flip with existing tenants. How to remove tenants?

Buying & Selling Real Estate
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Buying a fix & flip with existing tenants. How to remove tenants?

Dylan Faltus
Member since 2020 · 4 posts · 0 votes

Hi! I am purchasing a mobile home on land from a wholesaler under market value. My plan is to renovate the home and sell it. The home has existing tenants who have been living there for 8 years. The lease was signed when they originally moved in, in 2012. On page 1, it says the lease renews every year automatically. However, on page 2 it says the lease can be terminated by either party at any time with a written 30 day notice. I am a first time investor and am concerned there will be an issue where the tenants will not leave. 

Also, Ive seen where the new Biden administration is planning to extend eviction moratoriums by executive order within the first 10 days of taking office. Can anyone offer any advice on how best to navigate this situation? I am thinking to just offer the tenants full months rent ($700) if they can move out within the month of February. Possibly an extra $500 on top of that, if the original $700 is not motivating enough. I have attached 2 photos of the lease for reference. This property is in Florida.


Any advice or suggestions is GREATLY appreciated! 

Dylan

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    5y

    If you end the lease, you are not evicting them (unless they refuse to leave).  You are simply not renewing the lease.  If you buy it, the best is to put a larger deposit down and tell the seller you want it vacant upon closing.  There is not way you can do renos with it occupied.

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  • Dylan Faltus
    OP
    Member since 2020 · 4 posts · 0 votes
    5y

    Hi Theresa, Thank you for your reply! This deal is actually an all cash sale. I have put down $2,000 escrow to secure the property and am scheduled to close on January 21st. Im afraid i've past the point to request the home be clear of tenants by the time I take over? Since this is my first time, im sure there have been many oversights to learn from. My understanding of the lease is it already automatically renewed on August 1st, 2020. If I terminate the lease with 30 day written notice, do you think it will be difficult to have them leave? Thanks again for all your help!

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