Remove a tenant to occupy a house hack

5 Replies

Hey all, what is the proper way to remove a tenant in order to occupy a small MFR property?

Example, we're using a FHA loan, we find a fully occupied property that meets our criteria and we want to live in the MFR. How would I go about removing the tenant so we can move in? Can this be arranged on the contract or can I do it once we have, cash for keys etc. My concern is if I do it once the property is in my name under an FHA loan, the tenant may not want to move, then I'm stuck not occupying the property. Thanks in advance all!

@Adam Widder this is definitely something you would want to work out before getting under contract. The bank might not even fund you if it is fully occupied since you would not be able to live in it. Figure out when the lease is up on each unit. Ask the current owner if he could provide you the property with one empty unit. 

Ask for a copy of the leases and try to plan around the first one available. Make sure it's in the contract that they can't renew the lease on the unit you're going to occupy. I was able to use an FHA loan as long as I could occupy the property within 30 days of closing. I would ask your lender what their time frame is.

@Adam Widder make it part of your contract that the seller delivers one unit (or a specific unit) vacant. The onus is on them to buy a tenant out and make sure they are gone. It also tells the lender that you will have the means to occupy, which will let your loan proceed. Without that, unless leases end prior to your occupancy requirement they will probably not authorize the loan.

Update, we did a house hack, for the loan we used, the underwriter had to a have end in tenancy notice from the current owner to process the loan!