Buying a House with Exisitng Tenant

[Kevin Martin]

I have a home under contract to buy from a wholesaler. There is an exisitng tenant but they are suppose to be family members of the current owner. The wholesaler said they don't have a current lease with the owner but who knows. I think the current tenant is paying close to half what the current market rent is and I need to make some repairs. What is the play here? If they do have a lease(write one up last minute) do I have to honor it as the new owner? 

[Jim K.]

@Kevin Martin

As a general rule, a wholesaler can't be trusted to tell you the right time of day, let alone talk about who has what leases with whom.

Family members of the current owner are the absolute pig-butt nastiest sort of tenants in situ to end up with. Their former landlord was family and didn't charge them anywhere near market rate, as you pointed out. You will have to honor any lease with the former owner they produce as long as it's dated to even one day before the closing.

If it's a multiyear lease...sorry, you're stuck with it.

Bang on that door and find out what their lease is.