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Updated 11 months ago,
Purchasing a MFH in which all units are occupied?
Hey BiggerPockets,
I'm currently on the market for my first multi-family property in San Diego, California. I've recently seen a few properties for sale in which all units are occupied by tenants which prompted a few questions about the prospect of inheriting tenants.
In the case that tenants in all units have just re-signed 1-year leases, can one not use an FHA loan to purchase the property? Would one have to potentially negotiate a renter out of their lease agreement?
Can one place an offer contingent on the seller selling the property vacant?
How does inheriting a tenant's lease mid-term work?
What strategies have any of you used when purchasing occupied units that are currently rented far below market rates? In San Diego I believe rents can only be raised by 10% per year (or 5% + local rate of inflation, whichever is lower)
The idea of evicting a long-time tenant is awful, but I realize being a landlord involves difficult decisions and the real estate business is a business.
Thank you for your thoughts!