Newbie Buying with Existing Tenants, Assuming Lease, Questions

[Tyler Evans]

I've got a good deal, off market rare duplex in my area needing light rehab, PP 160k + 20k/unit (40k total) rehab = all in 200k. Once rehabbed, it will rent for $1,000/unit. I am using hard money for part of the purchase and the rehab. My monthly interest payments for 6 months will be $1,650. Rehab should take less than 3 months. Solid ARV is 235k so will be able to cash out refi in 6 months and only have around 30-35k in the deal and cashflowing solidly.

The catch - current lease is at $700/month and is presumably month to month. I do not have copies of the leases, supposed to have those tomorrow morning. It has been mentioned that there could be a 30 day move out clause that would ensure that once the property closes, the tenants would move out within 30 days and then I could start rehab.

A few scenarios:

1. I assume the leases and let them expire and then rehab once the current tenants leave. This would be pretty much a deal killer because I'd be paying $250/month essentially to the hard money lender (current rent 700*2=1,400; $1,650/month to HM lender)

2. The unknown/perfect scenario: both tenants happily sign a 30 day move out clause (does this exist?) and leave within 30 days of purchase, I begin rehab for 3 months, have both units rented out around the 5 month mark, cash out refi at month 6.

3. Nightmare scenario: tenants refuse to leave, I have no grounds to evict. Things get nasty and I lose my a$$.

What do I need to be looking for when I have my hands on a copy of the lease? Does anyone have any experience with a 30 day move out clause when buying a rental? Is there anything else I need to be considering? 

I obviously need to see the lease and gather more information but the house is getting put on the market this weekend and if I keep dragging my feet, I'll 100% lose the deal by Sunday in this market.

I am a newbie so any advice would be MUCH appreciated.