Inherited multiple evictions on section8. Need to occupy

[Orlando Goodon]

Just purchased a large 5 units with multiple section 8 tenants in pending evictions that have been going on for at least the last 3 months if not longer. For the terms of my loan I need to occupy one of these units within 60 days. The expectation was that the property would be delivered vacant but the evictions are being held up by the ERAP program.

I need to renovate the entire building which means I need the tenants to leave and in addition I need to occupy one of the units. I'm being told different stories about whether I can continue the current cases as the new owner or whether I'll have to start over.

either way I need to get these guys out quickly so I can do my renovations and then move in and then start finding tenants quickly so I can handle the massive mortgage. I can handle the mortgage but that means just about all my money is going to go into the property which means my reserve account is going to be at serious risk with no profit to keep it sustained.

I think my attorney messed up on some things here but we're here now, just looking at what my options are. My understanding is evictions were for non-payment and the tenants should be on month to month only. One has been there for 4 years so that means a 90-day notice. That much I'm clear on.

[Scott Trench]

This is definitely a question where the details matter. I think that you will need your attorney to give you a very clear path forward to evicting at least one of the tenants. If they don't give that to you, straight talk, get a new attorney. Keep going through the attorneys until you get one who gives you a clear, straightforward approach. 

Frankly, I think that you lost a lot of leverage in this situation when you closed. When faced with situations like this in the future, make your buyer contract contingent on one of the units being vacant upon closing. I've done this, and the seller typically finds a way to get the tenants out of there. No excuses on this - hold up closing for months if you need to in the future. The seller can always buy them out and just pay them to leave if they want to badly enough. That may be a much more painful expense for you than the seller, in this case.

Not only do you have to get at least one of these people out, when you do, you still have two other tenants who need to be evicted! You are, sadly, going to be an expert in this are on your very first purchase, and it won't be fun. 

You don't have great options here, from what I can see. I think you need to prepare mentally for a battle, make sure that you have a war chest, and can outlast these tenants through a legal/eviction battle, or pay them to leave. 

I hope someone else has more encouraging thoughts here.