Owner wants lease honored

[Alejandro Salcido]

Hey everybody, I have a question I hope somebody can answer. I'm locking up this deal, asking price is 130,000, with ARV of 180,000. But the property currently has tenants, the owner won't sell the property unless I honor her lease of her tenants, what can I do in this situation. She asked me to put an addendum to the purchase agreement stating that I will honor the lease? Lease ends until Dec 31st, I don't how I'm going to be able to assign this to a buyer? What do I do?

[Lydia R.]

@Alejandro Salcido I hope the property doesnt need any work, those margins are kinda skinny otherwise. 130k purchase price + wholesale fee and ARV is 180k. Seems a little skinny. If there is a lease in place it has to be honored, thats the law. So you can include language in your contract stating referencing the current lease agreement. You will need a copy of this lease agreement from the seller to give to prospective buyers. Also ask seller what will happen to tenants security deposit at the time of sale. It should be transferred to the new buyer. Also make sure any documents from the tenant move in are included (property condition checklist) so that buyer has an idea of the condition of property when tenant moved in.