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Updated about 9 years ago on . Most recent reply
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question about deal under contract
Hello,
I need some help on a deal I'm working on.
I have a 3/2 Duplex thats only 11 years old in a B class neighborhood. The tenants are on housing and section 8 pays for the majority of the rents.
The A-Side rents for $965/mnth --of which housing pays all but $300/month
The B- Side rents for $960/month--of which housing pays all but $153/month.
The place needs only new carpet and paint if and when tenants move
The seller told me he lives too far from the property and wants to sell for $120,000--I thought it was a great deal because it cash flows well with most is paid by housing, and the identical Duplex sold 2months ago for $149,000.
Here is the issue--The seller decided he quoted the wrong price and wants 125k. Also, after doing my due diligence I realized that the tenant on the B-Side has not paid him in 2 years, but the seller allow it because he was getting most of his money from housing. However the tenant (B-side) lost her housing 3 months ago and owes the seller $4600 and he has not evicted her.
The tenant on the A-side has housing, but has not paid her portion for 5 months and owes the seller $1500/month.
The seller has allowed these tenants to push him around and seems afraid to evict them. He believes they will destroy the place if he does.
The deal seemed a lot better when I thought he had paying tenants and no vacancies for 2 years
Should I get involved in this? If so, will a discounted price solve the issue? Should I have him evict the tenants 1st?