Chicago under contract w tenants remaining under month to month

[Roger Morales]

Hi all

I have a 3 unit under contract right now with a 203K Loan and just received the updated contract agreement where the seller has declined to take responsibility of seeing that the tenants in all units will be moved out at time of closing, in result I would be taking responsibility to have them move out. Asking for advice here.

Basics:

Currently tenants are paying month to month WAY below market value. There's clear mold in 2nd floor bathroom that needs to be addressed and basement has exposed sewer piping. Clear lead painting in the back porch. These things are all red flags I know will be raised in the next step with the FHA inspection.

Main concern really are these tenants, if I can’t move them out, I can’t:

a) get full rent to make mortgage

b) I can't move in myself under the FHA 203K rules

c) obviously not address the major issues properly? Or can I still?

Thank you to anyone who sees this and replies!

[Eric M.]

Hopefully as you consider all the things that concern you.....you have reserved at least a little concern for the difficulty you are imposing on the tenants??? 3 family's lives are being uprooted on pretty short notice.