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Updated about 9 years ago,
Transition of ownership- Duplex
Hey guys!!
So first off I'm very excited. I've been listening to podcasts for a while and reading posts for a while on BP and now I'm finally working on my first deal! I've gotten approved from a lender and now I'm about to put in some offers. 😆
Here's my situation:
The property is a nice two story 3/2 duplex, with separate entrances with two huge nice decks and a garage. It is in a fantastic high end neighborhood just minutes from incredible shopping centers. One unit is occupied by a long term tenant and the previous owner lived in the other unit. The owner of the property unfortunately had a stroke (she is elderly) and now the family is selling the property. The current long term tenant is paying a measly $450/month for the unit. I'm not sure as of now if the tenant was related to the owner or not, but $450/month is extremely low for the area and for that size unit.
So here's my question:
Can I raise his rent when I purchase the property and move in? (I will be house hacking)
On one hand I would feel morally and ethically wrong for kicking him to the curb just because something happened out of his control. But on the other hand, $450/month is way too low. I would just like to know the ethical and legal way of handling this situation before I start throwing out offers.
Any help on this would be great!
Thanks!