Posted by Dave T on April 06, 1999 at 21:58:04:
Assume nothing. Confirm that the properties are separately surveyed and platted. Once you get the properties under contract, offer to sell each tenant the home they are occupying and provide owner financing for a significant percentage of the deal. You get to name your price.
I will assume here that the seller is giving you a good discount for the entire package. If this is the case, then you will profit and still give your buyers a fair market price for their homes. Your buyers should have no trouble refinancing your seller-financed, above-market interest rate loan.
In my experience, rental property with tenants in place are sold “subject to” the existing lease. This means that you have to honor the current lease. Since each tenant is on month-to-month, just give each tenant a notice to vacate if you want the properties vacant.
Be sure that the seller gives you a credit for the tenant’s security deposits.