Buying a Fully Leased 4-Plex with FHA Loan

[Chang Hee Lee]

Hey BP,

Realtor here in Champaign, IL. So I'm looking to buy a 4-Plex through an FHA Loan (3.5% down) and understand that I will have to live in one of the units as per the requirements. Unfortunately, all four units are leased out until Summer 2018 and I would really hate to have to kick someone out.

Is there ANY way to make this work without having to force anyone out? Thank you.

[Shawn Ackerman]

@Chang Hee Lee Don't really see a way you can address this from your end however you may want to put the seller in the hotseat and tell him or her that the sale will be subject to delivering the property with 1 unit vacant.  You can add an incentive in the contract for the seller for any expenses incurred for allowing tenant to break the lease early.  I would suggest a 2-3 month rent incentive at closing.  Chances are an owner in this situation will be paying a tenant to vacate if all tenants are in good standing.  Best of luck to you.