I'm looking to purchase two properties locally that I plan to BRRRR. All current tenants are on month to month leases, have a disability, and are part of Section 8.
Id like to purchase one property for 70k, rehab for 30k and refi for 150k. This is a perfect opportunity.
Tenants have occupied their units (3 total) for 10+ yrs.
This is a rural town with a population of 5,000 people. Rentals are extremely scarce. Section 8 housing is almost nonexistent.
If I follow through and BRRRR this property I will have to evict these disabled tenants into the toughest local rental market I've ever seen.
Is there a way I can morally tackle this deal? I feel conflicted - the property will likely be sold whether or not I purchase it. Is there a way to help them relocate? I’d hate to make people homeless so I can make a quick buck. Advice?
Is it possible for you to do one rehab at a time? You set up a temp spot for them to move to while you rehab a unit? Maybe give them the option to return after the rehab? Section 8 may increase what they are willing to pay after the rehab.
Or if one tenant is maybe undesirable, discontinue the lease with that tenant and rehab that apartment, then move one of the other ones into that unit. Rehab unit 2, then move tenant 3 into unit 2 and rehab unit 3, rent to open market, or ask Section 8 if they have someone waiting.
I wouldn't do it unless I was able to find them new housing or keep in the current unit after rehab as suggested.