Financing a multifamily with empty units

[Julie Williams]

Hello all. I just read an article on commercial financing that said commercial lenders would consider rents in the decision when financing a multi-family if there were leases. I am going on a three-day car trip tomorrow and looking at nine multi-families. Some have leases in place, some have month-to-month tenants and some have one or both units vacant. I actually liked the buildings with vacant units, because they are already beautifully renovated and many of the tenants in occupied units have been there for a long time and are paying far below market rent. If I ask them to leave at the end of the lease, they could refuse and I could be stuck with them because of the eviction moratoriums. (My real estate agent is a landlord and flipper and he says to raise the rent to market over three years and he has always had them leave on their own.) With the vacant units I can charge market or close to market rents and screen applicants heavily to try to pick ones who work in stable sectors of the economy. Has anyone had experience in getting a loan for an empty duplex? I'm not asking about LLC/commercial lending vs.residential loans, a topic I have looked in to thoroughly. I need to protect my assets and want to buy with an LLC.