Gahanna, OH · Member since 2023 · 3 posts · 3 votes
Hello, this is my first post on forums and I think it goes without saying that I am new to the real estate game.
While searching around for potential BRRRR deals on different websites, I am either finding properties in need of full rehab (which I'd like to stay away from on my first few deals) or finding properties that look to have good potential but have current tenants already renting.
My questions are: When buying a property with a current tenant, do you acquire them automatically? What if you want to BRRRR, do you evict them, or set them up with temporary housing until rehab is complete if they agree to pay the increased rent? Does a BRRRR require you to buy a property with no current tenants?
Thank you in advance for your knowledge and suggestions on this topic.
Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
3y
@Zach McDougle, if the tenant is on a fixed lease and has been paying on time then you can't simply evict them. Moreover, the lease transfers with the sale of the property. You either have to wait for their lease to expire or offer some sort of cash for keys.
Property Manager · Phoenix, AZ · Member since 2023 · 101 posts · 77 votes
3y
There's good opportunity in buying occupied properties. The instant cash flow is nice. But yeah, you can't just kick someone out mid-lease. There are rare exceptions in cases of emergency or habitability but check your local laws. It's also unlikely you'll find someone willing to be temporarily dislocated for the privilege of paying more when they move back in. Your best bet is try and find them that are nearing the end of their term by the time you close escrow.