Am I inheriting a potential eviction problem?

[Aastha Shrestha]

Hello BP family,
I have come across a multifamily in Richmond BayArea (a 3bedroom main house and a legally built 1bedroom ADU). The main house needs a renovation, has potential to be converted to duplex and back ADU currently has a tenant. My plan for the property is to offer 600k, 20% down and 4% interest rate with first republic bank and 50k for the renovation.

When the current owner asked tenant at back ADU to vacant the property, they didn't compliant and has not paid rent since October. I am worried if this is a mistake taking up the property with eviction problem. I know I could negotiate with the tenant if they want to continue living and pay the rent or potential eviction.

[Mike Dymski]

Yes.  Find out the eviction process and adjust the market price down for the costs, lost rent, and compensation for your time.

4% sounds really low for the interest rate.