Buying Duplex, Have to Evict Existing (bad) Tenant? - Atlanta

[Kevin Tran]

Hi everyone,

I'm new to the rental business and thinking about buying a duplex in Atlanta, GA. I'm Looking for advice on a potential deal. I've given a verbal offer but trying to come to agreement on the existing renter before submitting the written offer.

This duplex is in rough shape inside and out, and will need a full renovation to bring up to rent ready condition. One side is vacant, other side occupied by a tenant who has not been paying rent to the current owner. Based on the pictures, the occupied unit (just like the vacant) would be deemed inhabitable. Leaky roof has severely damaged the ceiling and floors, which are both disintegrating. This deal is from a wholesaler, who is looking to assign the contract he has with the seller. I asked the wholesaler to include a provision in the purchase agreement which requires the seller to have the occupied unit vacated prior to closing while ensuring no further damage to the property through closing. I feel bad displacing people but it's potentially my first buy/hold deal and I'd like to come in with a clean slate. At first the wholesale indicated that should be doable without too much issue. Today, they got back and said the seller is old and doesn't want to deal with evicting the tenant. Wholesaler suggested "should be easy to evict, we'll help you."

I've crunched the numbers and think it'll be a good investment once fixed up. It however comes with a tenant who has not been paying rent. I'm also a little leery of this wholesaler's who is making it sound simple. Reading the GA eviction laws, the process of filing, responding, hearing can take up to a month, plus lawyer and court fees. Not to mention the potential damage left behind be the disgruntled tenant. 

As a rookie, I prefer to step into my first deal as a clean slate, but the deal is good enough to where I would like to explore my options. I thought of renovating one side while letting the tenant rent the other side, then allowing them to rent the renovated unit with increased rent while renovating the other side. But that smells like disaster with a tenant who has not been paying rent. Looking for advice and/or guidance if anyone has dealt with this before.

Thank you,
Trong