Illegal tenants! A situation that is happening right now!

[Mike H.]

Hey everyone! I am in a bit of a tricky situation and wondering if anyone has experience in dealing with a situation like this...

So I am looking to purchase an 8/3 REO in Brooklyn, NY. The numbers are great and I have a private investor lined up willing to lend on the property. Now to the problem. The structure is not up to code and has illegal tenants living in it. There are actually 8 units with 8 tenants. Illegal tenants have rights and you cant just force them out. Eviction would take way to long. Its freezing cold in New York, the tenants claim they are paying rent to a landlord and had suspicion of the home being in financial trouble. Obviously whoever the landlord is, is pocketing the cash (the home is foreclosed!). Not sure what the best strategy is to move forward... Paying off 8 tenants wouldn't be cheap and I'd have to get them all to agree. Time isn't on my hands. I want to make a "blind" offer to the bank before they show the home to 100 different investors creating a huge bidding war (seriously). The home needs $150k - $200k in repairs but there is amazing potential. All ideas and experiences to share are well appreciated!