Rehab & Hold or Fix & Flip?

[Erik Meltzer]

I'm closing on my first investment property in a few weeks. It's a duplex in Buffalo, New York. One of the units is occupied and the other is vacant. I want to rehab both units and then do a cash out refi. It's a BRRRR deal. Have you ever had success asking a renter to temporarily move into a vacant unit while it's rehabed? I was thinking about telling them that for the inconvenience, they don't pay rent for the 1 month they are in the other unit. I could also rehab the vacant unit first, then let the tenants stay there to make it more comfortable for them while their primary unit is fixed up. What do you think? Any thoughts on negotiating with them? There's an eviction moratorium in New York State still. Or should I just flip it after the vacant unit is rehabed?

[Sud S.]

Did you have any interaction with the tenant while on the property? How long is the lease term? If it is 2-3 months then no point in asking them but if it is more than that then asking does not hurt. Also just ask for changing unit. why you want to give them free rent for a month? That can be next step of negotiation if they show interest but don't offer this upfront.