How to house hack when all units are filled?

[John C.]

Hey guys, I am looking to house hack and this would be my first real step into REI. A lot of the duplexes/triplexes I am looking at are currently all filled. Some of these are properties are great deals and I am excited that there are already tenants, however I would need one unit to be free so I could move in..

I'd really hate to force someone to move just because I now own the building. I'm not sure if that's even legal? Has anyone come across this problem? If so, what are some ethical ways I could handle this?

Thanks!

[Gunnar Sevart]

@John C. When you sign the contract to acquire the property there will be an agreement stating that the renters leases will be honored. If the tenants leases are expiring soon after closing, then you do not have to renew it. That'll probably be one of your criteria when trying to purchase a duplex/triplex. One of the tenants lease will expire soon. 

[Thomas Hickey]

The nature of real estate investing is often displacing people to improve the unit and rent for a higher price.

[Thomas S.]

You are operating a business, one of the requirements of this, or any business, is that you know and understand the laws that govern the business. First thing you need to do is go on line and down load all your state landlord tenant regulations and learn them. Follow the rules, exercise your rights, ethics is a non issue.

Next you need to understand that all decisions are business decisions not personal decisions. No place for emotions or compassion in business. 

You state that you would hate to force some one to move, this is the wrong attitude in business. You do want to force someone to move in order for you to make money. You choose the unit you wish to live in and ask that the seller give notification for the tenant to vacate. If they have a term lease and will not leave you must wait till the lease ends then not renew. That is your goal in this business.

When term leases end make sure you have all tenants sign M2M leases. This is a major advantage to your business and should not be a problem for good tenants. You want to have as much control over your property and tenants as possible to allow you to easily remove less that desirable tenants. It is very common to have to replace all inherited tenants over time.