Landlord wants to sell house with tenants inside

Landlord wants to sell house with tenants inside

Flipper/Rehabber · Albuquerque, NM · Member since 2016 · 10 posts · 0 votes

I found a lady who wants to sell her home but there are tenants inside how do I go about this? I want to fix an flip the home

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Colleen F.Pro Member
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
6y

@Joe Splitrock  I think you meant to say several thousand less with the tenant.

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  • Rental Property Investor · Perry Hall, MD · Member since 2016 · 591 posts · 606 votes
    6y

    Make the property being delivered vacant a condition of the purchase contract. Maybe suggest to her that she offers cash for keys to facilitate. Ultimately she is bound by whatever lease she signed with them as would you be if you purchase the property and they're still living there.

  • Investor · Avon, IN · Member since 2019 · 30 posts · 59 votes
    6y

    As @Jon K. said, it's best to have the purchase agreement say the property will be vacant when you take possession.  Obviously this puts the responsibility back on the current owner of the property and will make your life much, much easier in the long run.  If the tenants are in the house when you take possession you may have to go through the eviction process which could add months (and added expenses) to your project.  I'm not sure how landlord friendly your state is, but some states make it extremely difficult to get a tenant out regardless of the situation.  Best of luck!

  • Investor · Dallas, TX · Member since 2015 · 446 posts · 197 votes
    6y

    @Chris Carreathers

    I’d be suspicious if she kept the tenants outside the house instead :)

    It’s a negotiable term to have the property delivered vacant. Based on your stated goal, that’s what you need.

  • Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    6y

    When you write up the contract include a contingency that the home be vacant upon sale. Let the seller figure out how to get rid of the tenant if it is something you are uncomfortable with doing. 

  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    6y

    @Chris Carreathers that is great if you can put in the contract to get the property vacant, but odds are good they want to unload with the tenant in place. If the tenant is gone, the value of the property goes up. If you are buying a distressed property, you normally take it as-is.

    Give her two options. Give her one price for the property vacant and several thousand less with the tenant. Let her choose and setup the options so you win either way. 

  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    6y

    @Joe Splitrock  I think you meant to say several thousand less with the tenant.

  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    6y
    Originally posted by @Colleen F.:

    @Joe Splitrock  I think you meant to say several thousand less with the tenant.

     Edited it to say several thousand less with the tenant, good catch! 

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