Updated 3 months ago on . Most recent reply
BUYING into a NON paying tenant situation
Hello everyone,
I recently discovered an off market multifamily property forsale on the cheap. It was disclosed that one of the current tenants has not paid for almost a full year, hence the lower price point.
Once purchased, I was thinking best case I offer this tenant "cash for keys". Plain, simple, and effective. However, after a meet and greet with the tenant it was made clear they have NO place to go. The tenant themself brought up a pay out, to which they mentioned wouldnt be an option for them since they would most likely end up in a hotel. The tenant has baggage, lack of steady income, no means of transportation, no family that will take them in, and prior eviction history (which should say alot).
My question: are there any other creative methods, given the circumstances, that can be utilized to work with the tenant to make them get on their way? Im willing to work with them outside of court. However, the more I think about this in my head the more I believe court may be the only/best option....it hurts the deal given the uncertainty the eviction creates timeline wise.
Looking forward to the responses. Thank you in advance.
Most Popular Reply
No...don't do it - because the cost is going to be much higher than you think. And, you're not a social worker. If this had been a simple solution or even a legal one - like eviction -it wouldn't still exist. The seller needs to correct the issue prior to closing.
Bottom line:
Buy the property - NOT the problem. Again, the cost will be greater than you think.