How to handle renters in property I am buying? - Posted by Joe

Real Estate Investing
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Posted by Ray (NJ) on January 28, 2000 at 12:46:32:

You might want to check with a lawyer on this, but in NJ, the lease follows the property. If you buy the property, the tenants are in there until the end of their lease. Depending on what the lease says, you may or may not be able to have “excessive” access to the property (showing to prospective buyers). You may not even be able to make large repairs.

On the other hand, if you want to flip, instead of keep the property, you may offer the tenants a small payment to cancel the lease. That may get them out. Or, even explain to them what your plans are. They probably don’t care WHO ones the property, as long as their rent stays the same. Plus, they’d probably be estatic about having the place fixed up.

Best,

Ray

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How to handle renters in property I am buying? - Posted by Joe

Posted by Joe on January 28, 2000 at 12:38:14:

I have a property(my first!!) that I can buy for $36k. It needs about $10k in fixup and comps in the area are coming in at about $70k. However the current owner(out of state) just signed a lease with the tenants in the building that is in effect until Feb 2001. He has asked that the tenants not be disturbed or know that I am looking at the property. Is this out of the ordinary? What I was planning on doing was a quick flip to a rehabber or landlord who works this particular area. Will the tenants hamper this. What is my best option?

Thanks,
Joe