All Forum Posts by: Jacob Pierson

You are in California, it is likely under statewide rent control, which means it could fall under the "no fault eviction" clause. 

The safest way to do this is to have the Seller make sure that the tenants are out prior to the close of escrow. Make sure it is done before you and the lender funds.

You can't take the risk of doing it yourself, especially as a first time home buyer. I would never let my clients do it and I know someone who tried and last I heard failed miserably. 

You are in California, it is likely under statewide rent control, which means it could fall under the "no fault eviction" clause. 

The safest way to do this is to have the Seller make sure that the tenants are out prior to the close of escrow. Make sure it is done before you and the lender funds.

You can't take the risk of doing it yourself, especially as a first time home buyer. I would never let my clients do it and I know someone who tried and last I heard failed miserably. 

Laws vary state to state, but if the contract is month to month, state law will have a minimum timeframe for you to give notice. I know you want to get the rehab done as quickly as possible, but be sure to be respectful of the tenant, who may have lived there for a while, and now is being asked (told) to leave. Though it is not required, a kind landlord will help them find a new place and give extra time for this.

Could you rent somewhere else while giving your tenants time to move out? Another option is to (gradually) raise the rent on your month to month tenants. If they are willing to pay market rents though the place is unrehabbed, you will have a net gain. I understand you will still need a place to live. 

I wouldn't close unless you have at least one unit vacant.  California is like NJ (actually NJ follows CA's lead), the laws favor the tenant.  Even if you get it in writing that they're gonna move out after closing, you just never know.  And this being your first investment purchase, better safe than sorry.

Unless you are adding a bedroom to the section 8's unit, I would try to get that person to agree to move.  I'm sure CA is like NJ too with section 8.......it's very hard to increase rents more than $25 per month unless you add at least 1 bedroom.  Even if the current rent is well below market rent, you won't be able to increase rent more than $25 without a fight.

Good luck!

 With the current leases being M2M, you could ask for them to be delivered vacant, but it would have to be done out of the kindness of the seller's heart, because based on your question, the seller is not compelled to do that. 

Have you spoken with your lender about this? Unless you are paying cash, the chances of your deal clearing underwriting before you have a clear path to occupancy within 60 days of close are very low. You'll need to have documentation showing that one of the units will be vacated within 60 days of close. I'd chat with your lender and realtor and get on that sooner than later so you aren't hit with a surprise at the last minute by the underwriters. 

Best of luck!

What are the current lease agreements? My understanding is that it doesn't matter if a new owner comes in, you still have to honor the existing lease agreements.