LA Duplex Month to Month Tenant Removal House Hack

[Janelle Carlson]

Hi BP! 

My husband and I have been considering moving from the suburbs into an LA Duplex 2+1 and a 1+1 for house hacking. There is a Section 8 Tenant in place in the one bedroom with under-market rents. We would like to renovate and move into that 1 bed unit and renting out the already renovated 2-bed unit (we don't need the extra bedroom). 

With the current Los Angeles laws in place, would we be able to not renew the lease with proper notice and have him move? I would put it in the purchase contract for property to be delivered vacant as well, and after inspections, part of our deposit could go hard to entice the seller if he is worried about the loss of rent if we don't close. 

If we end up having to get the tenant out would we be able to get him out without actually evicting him? I know that the process could take months here, and we would be banking on the rental income. Thanks in advance!

[Will Barnard]

Unless they leave voluntarily, you would need to pay them the mandatory relocation fees which could cost $20k or more per unit depending on who occupies the unit. Having the desire to occupy the unit as your primary may give you some more options but my advice would be to negotiate the purchase to be delivered vacant for that unit since you intend to occupy it.