Eviction is killing my deal

5 Replies

House flipping deal problem. Help Dear Friends!!

2bd/1ba mobile home on a 1.8 acre in So Cal.
Seller 86yr old,almost blind and handicap.
Bad tenant, month to month doesn't pay rent
Lowest sold Comps at 50k (for land alone)
I negotiated down to 20k, I have my own cash too.
Professional Eviction cost $1300 worst case.
Putting a home in Escrow to evict eliminates most tenant's legal leverage.
but the seller pulled out - stressed by lengthy eviction process (about 90 days) even though I commited to take care of everything.
Do I save this deal somehow or move on?

Evictions are often a cost of doing business. Sounds like you negotiated a good enough deal to account for one. Why is the seller stressed by the eviction though if you're going to do it after you take over ownership? Seems like that would alleviate their stress. As of now, all they have is a non-paying problem tenant. 

I have seen some pretty nasty eviction stories on BP for California. The worst one was some professional squatter stayed in a place 4 years before getting evicted due to loopholes in the state laws. That's worst case scenario - see what you can do to get comfortable your $1,300 estimate is reasonable for this scenario.

Are you buying the land as well as the mobile home?   A mobile home is not real property , it is personal property, so I do not know how it is affected by eviction laws. Have you looked into that vs. say, hooking the trailer up to a truck and towing it away? 

I agree with the others, cash the seller out so his stress is relieved as you are getting a really good deal anyway, even with a $1300 cost and 3 months missed rent.