Buying a property with tenants that need to be evicted

[Dylan Burnett]

Through marketing I received a call about a property with tenants that need to be leave but won't. I told him best price is mid 30's barring me seeing the property. ARV is 70 ish. This would be a rental with rents between 1000-1300 and it's in a C area. If we inherited the tenants how much money or struggle could it take to get them to leave. I know I could do cash for keys but I am exploring other options worse case scenario.

[Account Closed]

I make all my offers based on taking on holdover/inherited tenants, usually non paying.  But I know the worst case scenarios in my state (many $$ and months before possession, plus possible property damage).  There's always a risk as in better areas here we have professional tenant/squatters who know how to work the courts.  Those cases can take a year or more.

You'll get a sense of the seller's true motivation level if you make your offer based on taking on their legal problem.  The ones that are truly motivated know it will involve a discount and will negotiate with you.  The ones that are just hoping for a sucker buyer will want full price for selling it with a nonpaying tenant.  

You'd need to know what kind of lease, how far behind, is there a security deposit, what claims the is tenant making, if any.  Taking over tenants isn't really something I'd recommend for the non-experienced.