Inheriting Tenants Or Screen New Tenants

[Adam Bielous]

Hey everyone,

I just got my first offered accepted the other day for a multi family property! I am currently in the attorney review process and I have a dilemma on my hands.

There are 2 units and 1 unit is being occupied by a tenant and the other unit is empty. He is paying a below market value for for rent. My problem is inheriting a tenant that was the previous landlords tenant. My attorney was telling me that basically when you inherit a tenant - the screening process is not as strict as if you were to go out and find your own tenant. The deal may possibly not go through if I decide to get the seller to kick them out before we continue to closing.

What should i do here? How do I handle this? I’m brand new to all of this. I’m seeing what other fellow investors do in situations like this.

Do you just inherit the tenant and do your due diligence as much as you can OR do you just take the chance and have them kicked out before property is put under contract so you can get a brand new tenant and do your own screening?

[Sung Chau]

I bought all my 3 duplexes with an existing tenant except one unit.  that particular tenant was pretty gross.  Their place was very messy, crap all over the floor throughout the house. when I walked in she was laying on the couch and watching TV and tilted her head and said hi (that's only after I said hi) and continued watching TV, still laying down.  Pretty pathetic.  You can tell she was a loser so, I had them remove her prior to purchasing the duplex.  As for 5 other units, I kept them on after evaluating their situation.  Meaning, their house was picked up in/outside of the house. Or at least they made an effort.  Once their lease is up with the prior owner, you can set up a contract with yours.  Hope this helps.