My tax foreclosure property & dealing w/ the old home ow

My tax foreclosure property & dealing w/ the old home ow

Columbus, OH · Member since 2008 · 9 posts · 0 votes

I bought first investment property at a tax foreclosure sale and finally have the deed to the home. I've contacted the previous home owner and they've been nice up to this point. The daughter of the home owner was going to buy the house but then decided not to. I asked when they could move out of the property and she told me 2 monthes because her mother was in the hospital and they have a ton of stuff in the house from living there for over 30 years.

I think living in the house for 2 more months is crazy but if I go through the eviction process it will take me almost that long to get them out and then I've pissed them off and they could destroy the home. I asked them to pay rent and it was one excuse after another. So I'm considering offering them some cash. So my question is this.
1. Am I being unreasonable not wanting to wait 2 more months. (I bought the house in March but just got the deed last week)
2. If I offer them money to leave how long and how much should I offer?
3. How have others dealt with this issue?

Thanks!

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  • Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
    19y

    rhd1707,

    Start the eviction TOMORROW! Be sure to follow whatever procedure is required in your state to the letter. If you agree to allow them to stay, you'll just get more excuses in 2 months and THEN you'll have to file the eviction which will take another month or two. I NEVER pay anyone to leave. Yes, they may get mad and tear up the house - that's part of this business and there is very little that you can do to prevent it.

    Good Luck,

    Mike

  • Wholesaler · Amarillo, TX · Member since 2008 · 1k+ posts · 659 votes
    19y

    I agree with Mike. Evict them NOW.

    I personally do sometimes offer people money to move. I usually figure the amount I would give them based on my holding costs for the time period it would take to get them out. I always put a stipulation in there about the house being cleaned up to get the money. I think it does help motivate them to not tear up the house, and it gets them out quicker.

    Also, if you do give them money, make sure they are out before you give them a dime.

  • Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
    19y

    If you're in the rehabbing business or are simply flipping the property, then paying them to leave may not haunt you in the future. However, if you are in the rental business and have multiple rentals, paying people to leave is akin to committing financial suicide. The reason is that tenants know each other and tenants talk. If you pay people to leave when they rip you off, before long every deadbeat will know you're a weak landlord. You'll not only attract all the riff-raff, but they will all expect to be paid when they decide to stop paying the rent. Pay one person to leave and don't pay another one, and you might even be opening yourself to discrimination charges. Why did you pay Joe to leave but you aren't paying Sally to leave (and she happens to be in a protected class)? In the twisted, leftist world of the law, she (her free legal aid lawyer) might even sue you and win!

    Mike

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