Buying a triplex with a tenant who refused to vacate

Buying a triplex with a tenant who refused to vacate

Realtor · NJ · Member since 2020 · 9 posts · 2 votes

I need advise from experts on how to go about this. My first investment opportunity- a triplex with tenant in place that refused to move despite court injunction. The seller is willing to wait till the whole process is done. As to the price, she won't reduce the asking price even with a cash buy. I ran the comps it's relatively even out but more potential for growth. I am so confused now because I can't assess the property for the ARV. My experience as a realtor with such tenant, they tend to destroy the property when they are forced out. What's the best approach to this? Any valuable information will help my investment journey.

0Reply
19 views

3 Replies

Jump to latestLatest
  • Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
    5y
    I would let the seller take care of that tenant problem before I closed. In Ohio, the seller should be able to get access to the property for the buyer regardless of whether the tenant likes it or not. Here we do not have to have permission to enter for a lawful reason, only 24 notification is required. I'd find out if that is the case in NJ (it likely is) and push back on the selling realtor for access.
  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    5y

    @Samuel Sorinwa are you saying you are in contract on a property that is 100% occupied and one of the tenants is in an eviction situation? What's happened to date? If this is an actual eviction and it's outside the moratorium of COVID-19 protections...and the court has ruled, the next step is a set-out...there is no longer an option to leave...that's why I think there is more going on here. What is the reason for the eviction? How close are you to closing? Did you understand the situation when you entered into contract or did this just come about? 

    Realize Multifamily Group11 Review
    View Page
  • Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Samuel Sorinwa - if you don’t get a discount for a cash buy, then line up some investment financing since you have time. However maybe don’t rate lock or anything else that causes you to have extra fees based on a timeline until the tenant is moved out.

    Unless it's a big discount, don't close until the bad tenant is out. You should be able to determine ARV assuming everything is empty. If you've seen the unit you know what it should be and your sale price is determined based on that. If the property is substantially damaged after your offer then you don't have to buy it at the offer price and hopefully the seller would adjust down.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.