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Updated over 7 years ago,
Can I remove tenant so that I can move in for a househack?
My wife and I live in Texas and have been trying to buy a multi-family (duplex or triplex) to house-hack for several months. On average, only like 1 or 2 per month come available on the MLS. Once they do, they generally receive 5-10 offers; so competition is super high right now. We've already bid twice on other properties ($25K over asking price) but have lost them both. The only ones that don't have as much competition are the ones with leases that don't expire for at least 6 months. But that obviously requires us going in with 25% down on a conventional loan instead of a 10% if we can owner-occ it within 60 days. I don't want to permanently tie up that much cash in the property.
So here's my question... We're currently looking at a duplex with both units leased. The first one doesn't expire until January 31st. If I ended up purchasing the property, could I force one of the tenants out so that we could move-in to owner-occ it? We'd, of course, pay for their move and everything but wanted to see if this was possible in order to get approved for the conventional loan at 90% LTV. Like maybe see if the owner could get the leasee to sign an addendum that they'll move out if property is sold and their moving costs are covered.
Let me know if anyone has been able to come up with some creative ways to get a deal like this done considering the limitations of both units currently in long term leases. Thanks!