Getting tenants out of MFH to house hack

[Richard Phillip Lewis]

I’ve been in the market to buy Multifamily property to house hack for the past few months. I keep finding properties I like but the sellers refuse to get the tenants out before closing. 

I spoke with an attorney in NJ and he said the law is that you have to give 30 full calendar days notice if the unit is going to be owner occupied and 60 full calendar days notice if it’s not. After this time expires THEN you can file with the court for eviction and it’s up to the judge. To me there is some risk there if I close WITH THE TENANTS because the judge could say they have 6 months to get out and then the tenant could go back and ask for another extension. So I’m stuck paying a mortgage while I can’t rent the unit. 

HOWEVER, I spoke with an investor and he said it would be short sighted to let a property go because the seller won’t get tenants out before closing. He said he buys property all the time with tenants. He gives them his new contract with a price increase and they usually just pack up and leave if they can’t pay the higher price.

Is this the common experience for other multifamily investors out there?  

[Nathan Gesner]

Quote from @Richard Phillip Lewis:

It's common, but it depends on your experience. From 2012 to 2021 I managed 300-400 rentals and did not evict a single tenant. I asked many to leave. I told even more to leave. I even filed in court many times. But the Tenants all left before I had to stand in front of a judge.

You can give the Tenants notice that you want them out so you can renovate the building, and they will probably leave. You can tell them rent is increasing 25% and they will probably leave. You can tell them you are tired of late payments, noise complaints, or other problems and give them the option of leaving on their own or being forced out. They usually leave.