Duplex is fully occupied, but I want to owner occupy if I buy.

[Account Closed]

My duplex of interest is currently for sale but full occupied, and the leases end April 2017 and September 2017 at the end of the month. I would like to owner occupy this duplex. What are your thoughts on "forcing" someone to move, when both tenants want to stay? With an FHA loan, is there a grace period as to allowing the buyer a certain amount of time before they have to be moved in? For example, if I buy the duplex today, can I wait until April 2017 to move in?

[Jim Sakalis]

Joe,

I have to admit, this is a strange question coming from an investor, but I'm here to help.

First of all; let's put aside the income earning benefits of keeping the two paying tenants in there. 

I guess you have to ask yourself of what  increased value of you moving into the duplex would be.  Questions you ask yourself would be;

1) Would I generate more monthly income by moving the tenants prematurely?

2) What additional cost will be endured by me when forcing tenants out early?

Joe, to answer your question regarding grace period before moving into the duplex? First of all; FHA requires you to be an owner occupied or they will not fund the loan. Please get confirmation from your lender though just in case they changed some rules.

Unless I am missing something you are going about this purchase the wrong way.