Fourplex under contract, but owner now changing story when presented with estoppel letter

[Jason Clemens]

Hello All,

I went under contract on a Fourplex in Miami this past week with the following stats: two 2/1's rented at $900 per month and two 1/1's rented at $700 per month. I figured these numbers were fabricated, so I ran my purchase multiples at lower rates. I think I have a solid purchase price, particularly as I'm financing the purchase while the vast majority of deals in Miami are going for cash.

There is a language barrier with the owner, but my wife speaks Spainish and has been communicating with him. His story regarding his tenants has changed after I sent him the estoppel letter that I need his tenants to sign in front of me. I have a terrific inspector, but I'm hesitant to spend the $900 prior to getting this tenant issue resolved.

I'm interested in feedback from the BP community to debate various ideas for moving forward. Let me know if more information would help.

[Jason Clemens]

Tenants are all month to month and no formal lease exists. As an aside, I find it very interesting that the respondents to this post are suggesting simple answers like "read the lease" and "verify the W-2 income". Miami must be a very different market from the rest of the country in that it's a very fast paced an transient rental market with a lot of cash month-to-month tenants without much to verify.

I'm meeting three of the tenants tomorrow to sign my estoppel letter.

How does the BP community feel about accepting the risk of these random tenants versus pushing for an empty property upon close? Perhaps seller cash contribution to account for evicting a portion of the tenants?

Thanks for all the great ideas...