Need advice on a deal

[Mandar A.]

Hi Everyone 

Recently I came across a duplex deal. The cap rate on the property is really good. The house is older house and needs some work like roof. Both the units are occupied and are income producing. One of the tenants has been there for a long time and has been good tenant according to the seller. Now here’s the part that worries me and why I need your advice...the second tenant has been there for almost a year but she has been behind on her rent. She almost owes like $6000 in back rent to the current property owner. The seller told me that she got affected by covid  this year and fell behind on rent. To make matters worse it doesn’t help that tenants cannot be evicted right now for no payments. The seller told me that he has come up with a debt payment plan with the tenant so that the tenant can pay 700 dollars extra per month(in addition to her monthly rent). The seller claims that in recent months tenant has been paying including extra 700 dollars.

As part of the deal the seller is offering me to collect and keep 100% of past due amount. Meaning from the time of closing whatever is the back payment left I can collect that going forward from the tenant.

Do you guys think under current covid situation it’s a good idea to inherit this kind of tenant who has history of sporadic payments? By agreeing to collect past due amounts am I taking a risk under current situation?

Sorry for long post and appreciate any advice you guys can give.

Regards

Mandar