Possible Problem Tenant - Need Advice!

[Matthew B.]

I have a rather odd scenario I'd like to run past some of you savvy real estate investors.

I got a call today from an absentee owner who received one of my direct mailings. She lives about 2 hours away, but owns a house in my area.

Long story short, we negotiated and came to an agreement on the selling price. Its a great price for the house and I have the potential to make a nice profit after it is rehabbed and sold. Well within the 70% rule as well.

Problem is she has a tenant in the property. No lease, just month to month. Well below market rent, btw. This is no ordinary tenant. This is her ex-boyfriend. Come to find out he actually used to own the house. She lent him the money for the purchase via private mortgage. When he stopped making the payments, she foreclosed and took the house back while continuing to rent to him.

Now she just wants out. She doesn't want the hassle of the house or to have to deal with her ex-boyfriend/tenant. When I asked if I could make arrangements to see the inside of the house, she said she really doesn't want to deal with the ex-boyfriend and that he would make it difficult for us to get in.

Earlier this afternoon, I went out to the house and spoke with the neighbors. They told me the guy isn't the nicest person and is kinda weird. He's got lots of security cameras, etc.

Now, my parents have purchased many properties at foreclosure sales that we could not see the inside of. Sometimes its the gamble you have to take. We just up our estimated rehab costs. But I'm afraid this guy is going to flip out and destroy the place if he finds out its being sold. Insurance won't help because we couldn't prove the condition of the property before he destroyed it.

I'm willing to offer the guy cash for keys, help moving, etc. The animosity between the seller and ex-boyfriend makes me nervous.

Any advice here?