How can I make this Triplex Deal work? - Philly

[Ricardo S.]

Hey BP its been a while..

I have a potential deal on a Triplex in Philly. My plan is to occupy one of the units as per the requirements of FHA within 60 days of closing. Now the issue is all 3 units are currently occupied.

Leases expire as follows:

1st floor: July 31st 2019

2nd floor: August 31st 2019

3rd floor: January 31st 2020

Is it realistic to delay closing until July and have them deliver the 1st floor vacant? or should I try to close at the end of May and give the 1st floor tenant 60 days notice that lease will not renew and wait until lease expires. Or maybe I am missing something? To my knowledge there is no clause in their leases that states they are void if building is sold. What should I do? The property is located in Philadelphia PA. Tenants and long term and rents are below market.

Thanks in advance. 

[Seth Williams]

@Ricardo S., really easy. You have to express intent to move, And I believe it’s 6 mo, but either way, you wouldn’t be able to move if the tenants don’t move. As long as either you give them notice during the purchase process or after you take possession you are fulfilling your duty until they vacate. A quick google search shows the 60 days stuff, but the paperwork I signed said that, and legally if you complete the previous and intend to occupy after the tenant leaves you will be just fine. Hope that helps.