hey guys so I’m looking into a property that may have potential, so I’m looking into a building with 6 apartment units they all have leases and one is 500 behind on rent. How can I approach this situation what terms should I set? What would you guys do?
Hi! You can put in the negotiations that the current owner must serve them a 30 day notice to vacate or evict them before closing. Couple of ways to spin it so that it's not your headache once you own it. Don't let it be a deterrent if you like the property.
I took over a 6 unit building with the clause that the seller had to evict every unit, as all but two were non-payers, and the other two had trashed their units. This also allowed me the opportunity to also conduct a complete rehab on the property, as the units were vacant when I took possession.
@Mike Sattem I really like your idea, but somewhat scary being that it will be my 1st deal.
Just have the current owner evict the one non-payer, then remodel and improve each unit as vacancies occur. If you are going to be a LL, you are going to have to learn to deal with non-payers. Remember -- only your first eviction is hard. The rest are just a day in the life ....
Hmmm, "only your first eviction is hard" -- that would make a great T shirt!