Buying HUD tenant out of lease - Is it possible?

[Phil Bach]

I currently have a house under contract in a solid neighborhood in St. Petersburg, FL. I am buying the property at wholesale price with a lot of room for appreciation - the only drawback is that the property is currently leased until December 2016 - for a criminal $300 under market value. Even worse - it's a HUD tenant supplied by the City of St. Petersburg.

With the location and condition of the property it's a really sweet deal at my price - but with the current rent the net cap rate drops below 9%, where I typically shoot for 12-15% in this sort of area.  Additionally, the property would make an excellent flip with retail values in the $140k-$190k range in the area. But with the tenant locked in my hands are tied for the next year.

Or are they? Does anyone have any experience buying a tenant out of their lease, or otherwise enticing their tenant to pack up and leave? Furthermore, are HUD programs negotiable when it comes to established leases changing ownership? What if I told them I was buying the house to establish residency?

Any insight or help would be much appreciated.