Transition of ownership- Duplex

[Nicholas Armstrong]

Hey guys!! So first off I'm very excited. I've been listening to podcasts for a while and reading posts for a while on BP and now I'm finally working on my first deal! I've gotten approved from a lender and now I'm about to put in some offers. 😆 Here's my situation: The property is a nice two story 3/2 duplex, with separate entrances with two huge nice decks and a garage. It is in a fantastic high end neighborhood just minutes from incredible shopping centers. One unit is occupied by a long term tenant and the previous owner lived in the other unit. The owner of the property unfortunately had a stroke (she is elderly) and now the family is selling the property. The current long term tenant is paying a measly $450/month for the unit. I'm not sure as of now if the tenant was related to the owner or not, but $450/month is extremely low for the area and for that size unit. So here's my question: Can I raise his rent when I purchase the property and move in? (I will be house hacking) On one hand I would feel morally and ethically wrong for kicking him to the curb just because something happened out of his control. But on the other hand, $450/month is way too low. I would just like to know the ethical and legal way of handling this situation before I start throwing out offers. Any help on this would be great! Thanks!

[Jeff B.]

First, you can't access the tenant in-place until title transfers.

The length of the existing lease is an issue, but with your new ownership, you can serve notice of non-renewal at lease 60 days prior to the termination date.  In a separate cover letter, you might disclose your willingness to renew at the current market rate - - leave a phone number and suggest 'we talk this over'.  Mean while you could take the current owner's unit ready for your use.

It's most likely the tenant's unit will need major cleanup - even some refurbishing.