Stay clear of Tenant Occupied House?

[Jaret Lara]

Hey everyone, I hope you guys are well and thank you for taking the time to read this. 

I have a house off market and at 50% discount of ARV. The deal is locked and loaded, but there is a tenant in place. They've been there for 4 years, never missed a payment and their lease expires May 2022. The current owner likes to have his rents under market value so he's renting it out at 600/month.

The intention is to flip this house whether I do it or wholesale it to someone else to do it. Im having doubts with moving forward as my money would be parked for 6 months in the event that the tenants want to fulfill the remainder of the lease. Is this is still a deal or would it better to walk away? Perhaps a seasoned investor with more capital would like it. Im fairly new so, 6 months seems like a long time. 

If you have any words or wisdom, Id be grateful. 

[Marco Padilla]

Have you considered going to the tenants and offering them cash for keys? Another suggestion is how much rehab needs to be done? You could do the rehab, if is not too much. If they're willing to stay have them sign a new lease and sell it as a turn key investment property with tenants who have a history of paying. However there's still a lot of information that is needed. Most importantly talk to the tenants and see what their plans are make sure there's a valid history of them paying. Good luck