Purchasing multifamily home with current tenants

[Ricky Dorn]

Hey BP, 

I have been looking around for multifamily properties here in Southern California with the hopes of house hacking. A common theme that I've seen in my search is properties that have been listed for a while have tenants living in them, some paying under value. 

If I were interested in a property with this situation what options do I have? Are there resources that you might be able to point me to? 

[Jon Schwartz]

Originally posted by @Ricky Dorn:

Hey BP, 

I have been looking around for multifamily properties here in Southern California with the hopes of house hacking. A common theme that I've seen in my search is properties that have been listed for a while have tenants living in them, some paying under value. 

If I were interested in a property with this situation what options do I have? Are there resources that you might be able to point me to? 

Ricky, don't listen to these out-of-staters.

Tenants in California are protected from no-fault evictions with a few exceptions — one of them being owner move-in. There are some restrictions in the statewide law, but in many cases, a new owner can evict a tenant in order to move in.

Some municipalities (like LA) have ordinances stricter than the state law, but I don't think Fontana or Riverside County do.

I suggest you work with a realtor who's familiar with AB1482, the statewide rent control law. In many cases, you can just give a tenant 60 days' notice to leave after you close escrow.

Best,

Jon