Fix and Flip with a tenant

[Joseph Arellano]

I currently have a great lead for a fix and flip with the owner willing to sell at a great price. the only problem is there is a tenant there with a lease for a year and a half. What should I do?

[Jonathan Greene]

You can't fix and flip with a tenant. They won't cooperate and when you make it nicer, they won't want to leave and won't want to go through another sale. You can do a reverse BRRRR where you swap the first two Rs and buy, rent (and hold, keeping your money in it), wait until the tenant goes, then rehab, and sell or refinance and rent out higher.