Potential Tri-Plex redevelopment with One Tenant still in Place

[Matthew Slaughter]

Hello BP Community!  

We have a potential deal in the works that has a business on the first floor and apartment upstairs.  Plan is to add two additional units to the bottom floor and remodel the upstairs unit.  The only hitch is, there is a tenant upstairs currently,  paying way below market rent and is on SSI. 

There aren't a lot of rentals in the area and most of them range in the $1,200/mo 1bd/1ba, which is way above what this tenant can afford. 

They're elderly and have been in the place for a very long time.  We're trying to find an ethical and equitable solution that would help them and help us redevelop the building.  Has anyone had any experience with inherited tenants in a redevelopment?  We could do cash for keys but honestly, they would have a hard time affording anything.  How do I help this person and not sit with property for an extended period of time before starting construction?