Tenant problems During Small Multifamily BRRRR

[Colin O'Neill]

I closed on a top/bottom duplex BRRRR deal where a father and his son were staying in both the top and bottom units. The son on top, and the father living in the bottom. When I closed, I had the seller give a 30 day to the top unit so I could start rehab. That went smoothly and the son just moved downstairs with the father for the time being. The top unit is just finishing up rehab and ready to be rented out in the next week or so. I gave them a 30 day notice that I wouldn't be renewing their lease Sometime late February, so they had until March 31st to leave. I called mid-late March and they said there's no way they'll be out in time and need more time, which I gave them an extra month to do so, so they had plenty of time to find a new home (Mistake). After talking to them many times throughout the month about finding a new place, it seemed the only response is "We are looking, we cant find anything but we'll let you know." Clearly, they don't want to leave, nor does it look like they're going to. Keep in mind, I cannot evict because of the eviction moratorium.

Currently, as far as I know, it looks like the father moved out (who was paying the rent for the bottom unit) and now only the son is living there (unemployed, and claims he cant receive unemployment or stimulus because he hasn't claimed taxes in years). 

Note: This property was bought with a private note at 10% interest with monthly interest accruing around $1100/mo. I can't get the tenant out, so I cannot rehab the property. If I cant rehab, I cant get markets to rent and refi. So my biggest concern is that by the time the work ends up getting done, prices will have dropped (including my ARV) and lending will have tightened so getting money back out will be a much slimmer chance.

Any suggestions on how to go about this situation? Anything will help, thanks so much!