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Updated about 8 years ago,

User Stats

6
Posts
1
Votes
Joseph Benedict
  • Investor
  • Muskegon, MI
1
Votes |
6
Posts

Purchasing rental homes from out of town landlord

Joseph Benedict
  • Investor
  • Muskegon, MI
Posted

I am in talks with an out of town landlord on purchasing two of his single family homes.  Both homes are selling for just a couple of thousand over the SEV values.  The landlord has tenants in each home that are delinquent on their rent.  I have put in the purchase agreement that tenants should be out and a final inspection will be done before closing.  It has been two months and a couple of PA addendums later, extending the date, and the landlord hasn't been able to get the tenants out.  He doesn't want to use a lawyer and our court system requires the home owner or his/her lawyer to appear in court.

Now the landlord has dropped the price for me to purchase both homes and evict the tenants after the deals are closed.  The price was dropped $8,500.00 total.  I will run the risk of damages and at least one to two months lost rent on each home.  I have been considering offering existing tenants and cash payout to move and clean up the house within 7-10 days.  

Any thoughts or other angles that I should take or consider?