Rental Property Investor · Long Island and New Jersey · Member since 2020 · 34 posts · 2 votes
Hey BP!
I'm considering buying my first investment--a multi-family house with a legal adu! There is just one catch, tenants haven't been paying their rent for a few months and need to get evicted. The seller of the house is willing to pay any legal fees associated with the eviction as well as paint the house. The property is in a b+ neighborhood. What are some things I need to know/what due diligence is needed before the purchase? I'm located in Long Island, NY. Thanks!
Real Estate Agent · Portland, CT · Member since 2019 · 761 posts · 849 votes
5y
Hey Jorge,
Interesting situation you have here. I am not sure how you would structure the deal for the seller to pay all legal fees seeing that the eviction may not be able to happen for months. Instead, you could possibly ask the seller for significant funds back in closing cost to cover the cost of the tenant not paying for a certain period of time (ex 6 months) and for the eventual legal fees. You could also ask that the seller give you a big discount.
Another option is to request the seller pay the tenant to leave before purchasing the property. If they can do that, you are guaranteed to not have the problem after purchasing.
I am sure there many other out there dealing with the same situation and would be very curious to know what others are doing.