New duplex with inherited tenants, when should I rehab?

2 Replies

Hi everyone, I am closing on my first duplex in a couple of weeks. The property is located about 30 minutes west of Philadelphia. Both units are currently occupied, but paying below market rent and both units need to be renovated. The Property is basically break even cash flow after PITI, reserves, etc. They are on month or month leases, so I could choose not to renew the leases and have them out by October 31st. I am estimating 30-60 days rehab time for the units which has them finished in the middle of winter, which isn’t the best time to try to get apartments rented. Would you recommend getting the tenants out and rehabbing as soon as possible, or do you think it makes sense to keep the tenants in there and start the rehab process early next year so the units are ready April/May? Thanks for any responses!

It depends on how hard it is to find tenants in winter and how much the increase is.  In CA finding a tenant in winter wouldn't be much of a problem.  It might be beneficial to find a tenant in early spring though.