Refurb Duplex, STR, cash out refi; advice on current tenants?
Hi All!
I'm about to close on my first deal on 5/30 in San Diego, CA!!!!
It's a currently occupied duplex, that is rented waaay below market: $1,700/mo, $2000/mo respectively. Other units in the same neighborhood, same model, are renting at $3,395/mo each.
One tenant is currently month to month, and the other's lease is up in August.
We want to renovate ASAP! The same model home, upgraded, just one block over, sold in April for $1.32M.
We purchased ours for $1.05M and can get it up to same/similar condition as the $1.32M property with minor investment (~$50k).
As soon as we renovate, we plan to turn into a STR and cash out refinance ASAP to Repeat.
I'm looking for advice/strategies for how to get the tenants to vacate as soon as possible, while also showing empathy for their situation. Both tenants are great and have been there for a very long time. They've cared for the property, as it is in great condition. How can I create a win win for all?
Also, I know San Diego have some tenant/eviction laws, that were put in place during the pandemic that I need to maneuver around. But not clear on the specifics. Any help would be appreciated!