Purchasing duplex and not renewing tenants lease.

[Steven Maldonado]

Hello

So I'm currently looking at a duplex I want to purchase, planing to put an offer in this weekend, HOWEVER, I'm looking to owner occupy and both units are on a lease till 12/31. Both units are under market rents. My Lender told me I have 60 days to move in after closing. (FHA LOAN). I have a couple questions. First one being:

Should I tell the buyer I want him to inform the current tenants the leases will not be renewed?

Should I tell the tenants once I buy the property?

Is there something I can add to the offer that would imply the end of the lease?

My reason for ending the lease is because the rents they are paying are very low, unit1(1B1B)/$800, unit 2(2B1B)/$900, and what the average in the area for a 1B1B is $1000, and for a 2B1B it’s $1400. I’m pretty sure if I buy the place I can’t just tell the current tenants to pay me an increased rent of $500. Please let me know if there is a different way to go about this? Or if this sounds proper.

[Nathan Gesner]

Purchase the property with the requirement that both units be vacant at least two weeks prior to closing. This ensures you have plenty of time to do a final walk-through, the seller can make any repairs/cleaning to be charged to the renters, and then you can choose which unit you want to occupy and then fill the other unit with someone of your choosing.