Opportunity to purchase multifamily with one squatter

[Joe P.]

Hey all - looking at a purchase in Philly for a multi-unit property. I've heard from the sellers agent that one unit has a squatter. I see the eviction moratorium is in place through the end of the month, and then I assume the backlog begins, so it could be months before I even saw an eviction judgement.

Has anyone dealt with this situation on a potential purchase, especially in Philly? My gut says run, but my head says *IF* seller concedes enough, anything could be a good deal...

[Alex Uman]

@Joe P. I've seen a surprising amount of success with the acquisition of squatter properties. The key is closing on them at enough of a discount that the deal makes sense regardless of the occupant. Factor in the additional holding costs and the potential cost of either "cash-for-keys" or an eviction to make the deal make sense. Looking back on it I think you'll find you ended up getting the property for a steal when you've finally vacated the unit and leased to a better tenant. Oftentimes the headaches you'll experience directly after closing such properties will be worth it in the end.

Good luck on this investment!