Two Family House Hack- Acquiring Hoarding/Unsanitary Tenants

[Joe Livsey]

I have an accepted offer on a two family home in Westchester County in NY to purchase using FHA financing. It's a duplex with one unit vacant (into which I'll be moving) and the other unit has been occupied for 8 years by one tenant, a quiet couple in their 50s. They have never missed a payment, pay on time, keep to themselves and don't use the enclosed yard with the property. All sounds good BUT....

They clearly have not cleaned a thing in the last 8 years in the apartment, the place is disgusting (no foul smells but general filth), they have collected likely a full 8 years worth of magazines which are stacked throughout the kitchen, living room and bathroom along with miscellaneous newspapers, artifacts and other items. The previous landlord was a long distance investor and definitely not aware of the degrading visual appeal of the apartment because of the pros listed above. 

Question here is does any have experience getting FHA financing approved with a multi unit property where one unit is maintained poorly by tenants and could be flagged during the FHA appraisal process? Is there anything that can be done prior to the appraisal by the tenants/current owner or the buyer.

Any thoughts or comments would be appreciated!