Triplex with tenants, Should I Buy or stay clear away?

[John Lin]

I'm new to Bigger Pockets and I would like to hear from an expert on this one. 

I noticed two Triplex for sale and both triplex have tenants living in there. From what I gathered so far they are paying a little below the current rental market. What I'm curious about is, if I do decide to buy the Triplex that comes with tenants, do they eventually move out so that I can put in my own tenants or because of Covid, they are being protected and I would be stuck with them, even though I'm the new owner? I did do my math from what I have learn from Bigger Pockets and the ROT is about 24%, But I'm not sure if it's still a good investment or a possible nightmare. I'm wondering if the owner of these two triplex units with tenants are not paying their rent and the owner just wants out.  

Should I stay clear from this if it comes with tenants? 

Best Regards,

John Lin

[Joseph P Finkelstein]

Hi, John. I work for a brokerage in the LA area that works mostly in the multi-family space. A good portions of the deals that get done involve some tenant carryover. Depending on what your county rent controls are, there are some strategies that are effective and dealing with getting tenants out. Most of our clients use a cash for keys strategy, or do a stepped leverage of the allotted rental increase as per whatever the current rent control laws are. You can also sometimes negotiate with tenants to vacate in order to upgrade the unit and allow them to pay market rent post upgrade.