Seller needs two weeks after closing to move out

[Miguelli Fernandez]

Hi BP looking to see if anyone has experienced this before…

Been working a deal out with my agent (well known on this forum and has great reviews) and trying to close on my first out of state rental property. I was initially looking for a turnkey property but after finding this deal and going down the rabbit hole it has turned into a BRRRR.

Property is well priced and seller agreed to lower price after inspection was done and scope of work completed by GC. Both parties have agreed on price however seller needs max of two weeks after closing to move out since they need funds from the deal to move. 

I’d like the begin rehab as soon as possible and PM will be managing the rehab for 10% of rehab price. Per the agent, ok to start rehab while seller still in there for a few days up to two weeks.  my main goal is to just get the roof in before weather gets bad.

is there anything I can do aside from a 3k escrow holdback suggested by my agent to prevent getting burned?  I’m worried they won’t leave or damage the property. (Property is already in poor shape). Agent says this happens all the time.

[Nathan Gesner]

Quote from @Miguelli Fernandez:

1. If your agent is that good, they should have the answers. If you are asking questions on this forum, then I have to question whether you really trust this agent.

2. Leaving the seller in the home introduces risk. They can stay longer. They could take the appliances with them. They could burn the house down. You need to take steps to mitigate the risk. At a bare minimum, I would require a written lease agreement and a standard security deposit equal to an entire month of rent. If there's any indication this is a high-risk situation, then I would require two months of rent as a deposit. I would also ensure your lease spells out the condition the home must be left in upon move-out.