Eviction Before Closing?

[Sharrod Greene]

Ok Guys,

I'm in escrow on my first investment property. And I have a question. The property is a 4-plex, got it under contract for $75k. Question:

There is currently a tenant that is late on payments still living in one of the units. The Property Management company that is currently being used has said they are looking at evicting this tenant. Is this something I should ensure gets taken care of before closing? If so, how do I get that stipulated?

Thanks for the help in advance.

[John Chapman]

If you insist that eviction occur before closing then you'll just be delaying closing for some indeterminate amount of time. There's no guarantee current management will get them out in a reasonable amount of time or that they will do in the eviction in a way that does not make the situation worse (a lot of times tenants leave once papers are filed or you can do cash for keys) Plus, then you'll want to inspect the unit to make sure the unit is not trashed. I wouldn't waste my time insisting they get it done before closing, but I would factor in the cost of eviction and fixing the unit up once you get possession. If the deal still make sense, then proceed.