Updated over 4 years ago on . Most recent reply
Buying a house with tenant in place
I am considering buying an off-market property from a distressed out-of-state owner who has a tenant that doesn't pay her any rent in order to fix and flip it. I already inspected the property, spoke with the tenant and got a feel from him for what his intentions for moving are. The owner already told him she is selling to me and needs him to move out. The tenant assures me that he is looking for a place; however, I am skeptical that he will move out within the next month or two on his own. I offered him moving assistance ($2000 cash) in order to incentivize him. Should I buy this house 1) with verbiage in the contract that closing is contingent on tenant moving out or 2) with tenant still living in property with hopes that I can get him out soon. After all the eviction moratorium has ended. I know most of you will say #1, which makes logical sense, but with #2, I'm sure I can negotiate a lower purchase price because that way I'm getting rid of the owners' headache and they can have their money faster. I know it's a risk, but the way I see it, at worst I lose a month, maybe two, in the eviction process, and my lower purchase price will more than offset a month or two of carrying costs. Also not sure if my hard money lender will approve of Option 2.



