buying a 3family with tenants?

[Bryan M.]

I am working on a deal right now for a 3 family, the numbers look good and the seller is offering owner financing, which is attractive, also he is negotiable on price. There is currently one vacancy and the other two apts are rented out without leases, last months rent or security. Do most investors choose to have the seller evict all of the tenants before the sale goes through and have a vacant prop? Only problem with this is short term carrying cost until vacancies are filled. In the long run this strategy would probably save money because these current tenants sound like they would be problems for me if I buy. I would prefer to screen all tenants myself.

If I do request that the apts are vacant I will also have to paint and possible recarpet, that is also an expense to consider.

Any thoughts, also do these associated costs such as repainting, recarpet and finding new tenants factor into sale price and by how much? Thanks for the feedback.

[Ralph S.]

You're assuming these two tenants don't see the end of their gravey train coming to an end (no depo, no written agreements) and aren't already looking for a new place.
Even if all you do is ask them to fill out your application and tell them you want a written agreement, they'll spook if they haven't already.
Plan for 3 vacancies shortly after closing, is my suggestion. If you have to paint and carpet each, build that into the plan as well.

Hope for the best, plan for the worst.

Oh, and don't take the seller's word for the no deposits or leases. Confirm this with the tenants.