Purchasing an Occupied Property - With Tenants Who Aren't paying
I came across an opportunity to buy a single family that has renters in it that stopped paying rent. The seller, a friend, has already been working with an eviction attorney. The attorney believes the renters will be forced out in the next 3 months (I have seen the correspondence between current owner & attorney). The seller is highly motivated and just wants to be done. The property hasn't been maintained but according to the seller, there aren't any major repairs he is aware of. There are three comps in the neighborhood that justify my purchase price would be ~$100K under FMV. My market is INSANE currently, with properties receiving 20+ offers in the first 24 hours, waiving inspection, all cash, 5% over ask, etc...
My questions:
- - I'm exploring private lenders, but would a bank give me a loan on a property in this situation?
- - It seems very risky in COVID times to deal with evicting and there's a concern that could drag out...thoughts?
- - This would be my first investment, so I'm obviously hesitant/nervous. Having $100K in profit to play with eases that, but would you suggest partnering up with someone who knows what they are doing?
I'd love any input. There's likely 100 bits of info you guys and gals will be looking for that I may or may not have. I've also considered just trying to wholesale it, as the current owner isn't connected in the REI community the way I am.
Thank you!
Jon