Inherited Tenants ( Is it worth to deal with them)

[Yashira Zavala]

Hi BP!

I have a question about inherited tenants since this would be our first deal (other than our own home). 

We are closing soon on a 3bed/1.5bath Duplex with tenants in place. Their rents is at least $200 below market, both units need some cosmetic work, tenant 1 is a hoarder and tenant 2 is a section 8. 

We would prefer to ask them to move(3 months ahead, April-May), revive the units and rent them to new/better-screened tenants but at the same time we are concern about vacancy (although we are in Madison and the area is nice so it should rent fairly quickly). 

Are we starting this the right way?

[Darryl D.]

A hoarder and a section 8 tenant is a recipe for disaster. Filling a vacancy is less costly than prolonged damage and losing $200 every month. You inherited a property, don't inherit the burdens :)