How to close on duplex with tenants for house hack

[Cindy Schneider]

I'm a first time investor, planning to house hack. I am supposed to close in a duplex October 25th, I plan to live on one side. The seller has given notice to the tenants on that side that they have to be out in 30 days, which I'm not sure if it would have been the 25th or the 30th depending on when he told them. I have to give 30 days notice at the apartment I currently live in, which I was planning to do on Nov. 1st so I have that month to get settled in the new place. The issue is the seller isn't trying very hard to guarantee the renters will be out of my side at the end of October or even the 1st week of November. He gave me their phone number and I talked to the guy, he said he's getting a plan in place and may have a place to go but his roommate might not and he still didn't have a for sure date of move out. He's been there for 6 years and was planning on moving in the next year anyway so he didn't seem really upset and he said he knew the owner was selling and that this could happen. I am worried that if I close on the 25th and I tell the renter he has until the Weekend of Nov. 1st to move out so I can get in, that he may not be gone yet and I'd have trouble getting him to leave. Plus the fact that I will have to get out of my apartment and I'd be homeless if I can't get in the duplex. This is a for sale by owner duplex. The seller has an attorney, I have an attorney that did my paperwork only and doesn't represent me. I've been talking to other real estate investors and they suggested I still close with the renters in there so I don't lose the deal. But my attorney said don't close until the renters are out. If I push out dates then my loan application expires and I have to pay extra fees. I don't know how to handle this.

[Aaron K.]

Don't close until the tenants are out is generally the way to handle this.  It sounds like they will be out.  If you don't want to pay the extra fees on your loan you can decide either to close and take the risk of getting the tenant out on time or you can go back to the seller and ask them for the fee as they were unable to have the tenant vacated as promised.