Good morning! I need some advice please. I'm interested in this short sale duplex in the Los Angeles area. The agent said that the current tenants are very problematic and the back unit of the duplex is currently rented Section 8. What kind of advice would you experienced investors have for this type of situation? What are my options? Thank you!
This sounds like a disaster waiting to happen... If it's that good of a deal you can buy it and turn them over when their lease ends, or have a property manager do it if they'll handle section 8 tenants, many won't.
Disaster waiting to happen seems a bit strong, but it is a situation where you'll want to take extra care when running your numbers and ensure that you'll still get a good deal even if you have to pursue a formal eviction on both units.
Include the possible eviction costs, budget higher on the rehab (in case the departing trouble tenants do more damage) and an extra 2-3 months of holding before being able to rehab and rent/flip in case you have to follow through the full eviction process.
Thank you! I will looking into the numbers more closely. Didn't consider the extra 2-3 months of holding.
What is problamatic? about this tenant. Are we talking about someone who is not paying their rent? That certainly is a problem.
Are we talking about someone whose behavior is turning into an eviction well that's certainly a red flag
Nothing wrong with a section 8
@Danny Luu I would make the sale contingent on the sellers getting the tenants out and delivering the home to you vacant.
Thank you all for your advice. I am trying to get more information from the agent/owner in regards to what they mean by "problematic" tenants.
@Account Closed That is really good information. I am also a little worried about the market hitting a peak and thats why im trying to be as smart as I can about getting into a property at this time. Honestly, I will probably end up passing on this but i was to exhaust all my options and at least take away as much as I can from this experience in regards to research and due diligence. thanks!
Is there a lease in place?
Is this actually a good deal?
if it is a short sale I don't know that you will get it below market value but worth looking into.