House hacking with inherited tenant

[Caleb Davis]

My wife and I are possibly putting our first offer in on a duplex using an FHA 203k loan to cover the cost of renovations to the side we will be living in. The property already has a tenant living in the other side and the reported rent is already at the market average(we're in the process of verifying that now). We havnt been able to tour the tenant occupied side yet, not until we have an offer accepted, but when we were touring the property in general I noticed the front yard of the tenant side absolutely littered with cigarette butts, which makes me a little uneasy about the quality of the tenant. They are currently month to month but I dont want to walk into this dealing with an expensive eviction off the batt if that's what it comes to. How would you recommend navigating this situation? Also if anyone has advice on the 203k process in general that would be great, I do already have a licensed GC that came toured the property with us to give an estimate of repair costs. Currently it needs about 25-30k in renovations on our side but we dont know much about the tenant side yet, which also makes me nervous because the deal really only works if we dont need to do anything to the tenant side. We'd also be throwing the majority of our capital at this(I know probably not smart, but we're ready to get in the game and need to get out of our current living situation) but we would be able to afford the mortgage in our own without the other tenant in place.