buying property and owner occupying

[Elizabeth J Humphrey]

I will be purchasing a multifamily unit 2-4units with an FHA loan that requires me to occupy one of the units within 60 days of closing. My question is what if all units are occupied? Would they have to have new leases with me? I would assume that since I took ownership that the previous leases are null and void assuming this is not section 8 ,HUD, or any other govt assisted housing. Do I just pick which unit I want to occupy and give that tenant 60 days notice and have the other tenants sign new lease with me? I live in Florida. Thanks for any input

[Bryan O.]

In most cases the leases are NOT null and void. I just did an FHA for a 3-unit in Colorado this year and made part of the purchase contract was that the unit we needed to occupy would be vacant with no lease prior to closing. They had to incentivize the tenant to move out. If you inherit the lease, you now have to honor that lease. If you were living somewhere, how much money/assistance would you require of your "money-bag landlord" (most tenants think this is true) to make you want to dissolve the lease and move?