Buying a property with tenants that don’t pay

[Johnathan Cummings]

Hello BP, I’m looking at buying a property to flip. Currently the seller is an estate and they’re willing to seller finance for 2 years at a $600/month payment, 4% interest, $5,000 down. Currently there is a tenant in there that the estate inherited that has no formal lease and hasn’t paid in 6 months. If I buy this property what are my risks and what is the best approach to evict them, go through eviction process? My thought was to just offer them cash to leave. This is in Bethlehem PA.

[Drew Sygit]

Have done this in Michigan for a huge discount on the purchase price.

Appears you are getting great terms on seller financing, so that may be worth it.

It will all come down to your level of confidence in what YOU can do!

Concerns:

1) How long it will take to evict the occupant
2) What claims occupant may have to the property you aren't aware of - are they a relative?
3) Potential damages occupant will do in retaliation for being evicted

Recommend visiting the property and talking your way into it (do NOT tell them YOU are a potential buyer - you only work for that "person") to VIDEO (for future documentation) the interior for its condition and then use this as an oppotunity to chat with the occupant to learn why they are there and why won't they leave. You may be able to VAGUELY find out their terms to move.