Potential property with tenant unwilling to pay rent

Member since 2020 · 1 post · 0 votes

Hello everyone, so im looking at a property priced 55% below market value in Lancaster Ca. The seller put up the property because they have a tenant that will not pay rent due to covid-19. Seller is asking for a quick close, no continginces sold as is. Would it be wise to buy the home then deal with the tenant or steer clear? I own 1 property used as a personal residence and just started renting it and i am eager the add another door to my portfolio.

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Zackary R Drago
New to Real Estate · St Louis MO · Member since 2020 · 8 posts · 1 vote
6y
maybe cash for keys pay for a mover if the deal is good enough you can work that into your numbers
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
6y
Calculate the costs. If the rent moratorium extends another six months and then it costs you $2,000 to hire an attorney to evict, is that still worth it?
I hate cash for keys. However, I also hate that the government has Landlords over a barrel with this rent moratorium. This is one of those rare situations where I would say it's appropriate to attempt to pay the renter to leave. I would start by letting them know the rent moratorium is temporary and they will eventually be held accountable for all unpaid rent, even if they move out after six months. Tell them if they move out, you will forgive them the unpaid rent and pay them the first month of rent and deposit at their new place. That's a lot of money.
If they refuse, let them know you'll hold them accountable for every dime and it will sit on their credit record for the next seven years, possibly preventing them from renting or qualifying for a loan.
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