When the bones are good but the tenants are not...
We looked at a place today that was interesting. It's in an area we are looking to get into, the price is right, and it's a side by side duplex, each 3 bed/2 bath. It's an older character home, semi-detached style, and a lot of great features - high ceilings, crown moulding, and a lot of upgrades (roof, both furnaces, all wiring, and insulation under the energy rebate a few year ago).
Anyway, we walked through one unit and it was disgusting. Bongs on the table, clothes, food, garbage everywhere. I couldn't take a full look because I was just so uncomfortable in the space. I know I need to get over this part to find those diamond in the rough properties, and I see it in this one.
I have two questions:
1) For the experienced real estate investors, how do you detach from the emotion of walking into a space like that. I can see beyond the mess, I loved the bones and features of the house and I can see the potential. But the emotional part of me felt so uncomfortable in the space, and wondering how people can live like that. We've never had tenants at this level (lucky I assume?) but I know if I want to take our REI to the next level, I need to get over this. Any tips?
2) If we buy a property with a tenant like this, how do we get rid of them? In this case, we'd like to get rid of this tenant, upgrade one side, rent it for more, and then do the other side when the other tenant eventually moves out (our plan is to BRRR this one). Is there a way in Ontario to do this?
Would love any more suggestions from those who have BTDT.