Eviction under the CARES Act

[Brandon Kingcaid]

Hello everyone. I'm in the middle of closing my 1st deal with an FHA 203k loan in the middle of all this madness. It's a triplex with 3 tenants that have not paid rent since February. The property needs 135K worth of work, renovations must start within 30 days, and they must be completed within 6 months. According to the CARES Act, I would have to wait until July 24 to serve a 30 day notice to vacate, in order to evict my August 24. This would kill my savings, and put me in danger of defaulting on the loan terms. San Antonio is lifting the eviction ban on April 30. If the current owner serves a 3 day notice to vacate, and then files the eviction papers before the "federally backed mortgage" closes, can I get these tenants out of there after ownership transfers to me? Any ideas?! Thanks in advance for helping me with this drama.

[Nathan Gesner]

This sounds like an awful deal. You have three tenants that may have to be evicted and it could take you a month or two to complete. Then you have to renovate for an additional $135,000 and sit on a vacancy for another X months. By your own admission, you risk running out of money and defaulting.

I can't think of any good reason why you would move forward.