Buying property with existing tenants (no lease)

[Aditya Maini]

Considering buying a property existing tenants that have been living there for years. The owner started off with a lease and would renew it every year, but currently they are not under one. Following the BRRR strategy, I want to rehab the units.

What's the best way to go about this? I understand its a business, would something like giving them a month to move out be satisfactory? Even a month delay to starting rehab would slow me down since I am looking to get HML with hefty interest rates.

Thank you in advance. 

[Mike McCarthy]

Most states require 30 day notice, though some are 60, so know you landlord tenant laws. Regardless of your plans, get the tenants to sign estoppel letters verifying their security deposit, rent amount, etc. I’d also ensure there’s a spot for them to state when their lease ends or is MTM. I’d hate to get in and find out the lease states that it auto-renews yearly!!