What would you do......

Question

I have agreed on a price with an owner for a (2) family. We agreed on the price of 55K. All dates, terms and conditions were agreed on but one. The owner has a non-paying tenant in one unit. I asked for the unit vacant but he would not give Notice to start the eviction. he says "as-is." I believe he is friends with the tenant or has empathy for her b/c she had her kids taken by Social Services, had a hard life, so-on and so-forth.

Take it with the tenant in place or stand firm? I am worried he will find some else to buy if I do not buy now.

The ARV=110-115k
Property needs 20k in repairs.
PP=55k with 5 k concession for closing costs.

Take it with the tenant in place or stand firm? I am worried he will find some else to buy if I do not buy now.

The ARV=110-115k
Property needs 20k in repairs.
PP=55k with 5 k concession for closing costs.

Michael Rossi · Answer

Yes, or she could get a free legal aid scumbag lawyer and after 2 or 3 continuances, she could request a jury trial, which could take several months.  Then, after she loses, she could plug all the drains and turn the water on full blast (that actually happened to one of my friends).

Mike

Jimmy NA · Answer

Rents: 1 paying tenant at $575 per month, no utilities, 2nd tenant was supposedly paying $575 also.  These numbers are typical for the area.

She has no lease.  She is a tenant-at-will and hasn't paid in 2-4 months. Yes, the landlord "manages" his property in a very loose manner. He lets things slide.....
It will take 6 weeks to get her out.
Yes, these 6 weeks will mess up my plans a a big way.  I need to work on the roof over the kitchen and will need access to the house, which I am sure the tenant will make difficult for me. (A leak is causing damage in the kitchen.)
I just feel like I will miss something good for an issue which may disappear in a week, 2 weeks. The tenant could just pick up and disappear one day, and I will have missed a great deal b/c of my fear and uncertainty.

Michael Rossi · Answer

On the surface, this looks like a pretty good deal (although you didn't post the gross rents).  Having a problem tenant doesn't help.  How long will it take to evict the deadbeat in your area and how much will it cost?  Ohio Realtor gave you excellent advice - you MUST determine the status of the leases and ensure the owner doesn't sign any others prior to closing(on every deal)!

This is an interesting case study of a typical failed landlord.  This owner has a non-paying tenant and is losing money but doesn't have the guts to kick her out because he feels sorry for her!   :violin:  I wonder if she feels sorry for the owner who is now selling his property for 50 cents on the dollar?

Mike

Jim Gordon · Answer

Do you have a copy of the lease and what have you done to stop him from writing a new lease with that tenant with very favorable terms?
 I have taken property with deadbeats in them and you get a better deal because the current owner does not have the guts to evict a friend.