Buying a Property with pre-exisiting non paying tenant
I am currently going back and forth with a seller on a two-family house. The seller seems to have no other offers due to the fact he has a tenant currently three months behind on rent. I have been trying to get any information on the non paying tenant from the seller's agent with no success. I have no idea if tenant issues are related to COVID or any other factors. All I know is the seller and this tenant are friends.
I put in an offer of 310K with the contingency that the tenant is out 14 days before closing. The seller countered with a purchase price of 299k with the contingency that if the non paying tenant is not out the deal will just be finished. This means I would lose my money for the inspection and the appraisal of the property. I would also be losing time during the closing process that I could use finding another property. The reason why I am still looking at this deal is for the potential of converting a basement into another unit turning this two family into a three family.
Any advice or tips from similar experiences would be great!