Buying a fixer upper with existing tenants

[Bindu Lopez]

Hi all, 

Quick question, i'm looking at a house in my market that needs a decent amount of work. Its currently occupied and the rent being charged is way lower than comparable houses in the area. What do you do? Stay away from this or buy it and immediately raise rents so current tenants will leave (because it looks like they've trashed it), rehab and an then get the higher rents? if the rent stays as is, its not a good deal because the mortgage isn't even covered. thanks!

[Aaron K.]

You would need 60 days notice to get rid of the tenants if they are on a month to month lease, at that point rehab and get it done.  Raising the rents is just a meaner way of accomplishing the same thing in my opinion because you would be asking them to pay the higher rent for a property that isn't in a condition to justify the higher rent.