Wholesaling a property with bad tenants

[Joseph Ziolkowski]

Hi all! Just wondering what your thoughts are on this. Is it doable? Is it adviseable? I'm about to make an offer-in-spirit (nothing written yet) on several properties, and 2 of them have dead-beat tenants. I want to make an offer on all 5, since they're all paid off and the lady's husband is too old and sick to take care of them. What would be the best course of action? Should I not make offers on the 2 with bad tenants? Should I make the offer but figure in the cost of evicting them + 90 days holding costs? Any advice would be much appreciated! :cool:

[Ryan Webber]

Cash for Keys can also be a very effective eviction strategy as Peter shared. I've used it several times also. Just always make sure that they are completely out before you give them the cash. Even with cash for keys, I've had problems moving along tenants fast enough, and if you've delayed the eviction a month then you're behind the curve that much more With a 3 month eviction process, I would definitely lean towards the discounting the price more strategy and doing cash for keys.

As for worrying about the condition of the property because they're deadbeat tenants, absolutely. Let's be clear, most wholesale deals are going to be in horrible condition. That's the nature of this game. That's why you can buy them at such a discount.

As for assessing the property condition, its actually better to have a bad tenant in there, because when you ask the tenant what's wrong with the property, you can be sure that they will tell you about every single little thing that isn't working properly.