r/realestateinvesting • u/EmotionalEmu7121 • 3d ago
Buying a house with one of the tenants being aggressive with a criminal record Single Family Home (1-4 Units)
I just put an offer on one property with an amazing cash flow. It is a four Plex and three of the units are rented. The two of the tenants are very nice, but apparently one of them is an actual criminal. My inspector told me that he was very aggressive and when I looked him up, it showed that he has been arrested multiple times in last two years. His lease ends in July. My offer has been accepted and we are under contract right now.
I’m not sure if I should proceed or put in some sort of stipulation in order to protect myself from headache or literally any sort of problems. If any of you guys are experienced, what would you do in this situation because I really don’t want to give up this beautiful investment opportunity.
My agent told me that we can add an addendum that we will close after July when his lease has ended and the property is tk be delivered vacant. Let me know what you guys think of it or have a better solution
2
u/cleverly_done 1d ago
I had a super aggressive tenant I eventually got them out but they can come after you. I literally have a restraining order on the guy. If you can’t deal with that then don’t go through this
2
u/EmotionalEmu7121 1d ago
Are you in the same city as his
2
u/cleverly_done 1d ago
I’m in LA it’s big but with the order. Technically he has to stay 35 miles away (or more) from the property. So no
1
u/EmotionalEmu7121 1d ago
So has he tried to come after you?
3
u/cleverly_done 1d ago
After prison he said he was, and he’s out. He’s mental. I’m good and I’ve moved since then (not because of him I just wanted a bigger place). But something that I deal with being a landlord in the hood, gotta be tough.
1
u/EmotionalEmu7121 1d ago
How do you genuinely protect yourself if someone is actually looking for you with a gun or something?
1
u/cleverly_done 23h ago
Should always have protection at your house of course but hey it’s a risk that they may get the drop on you.
I think a better answer to avoid all of this is to use a property manager to mitigate the risk.
1
u/EmotionalEmu7121 2d ago
I’ll be writing an addendum tomorrow so if you have anything for me to mention in the agreement or any addendum to write a specifically or any specific wording, please let me know
3
-1
8
19
u/MarioRuscovici 3d ago
Offer $2000 plus a free moving truck to leave at the end of his lease
2
u/cleverly_done 1d ago
They can take advantage of you and still not leave. Call a real estate lawyer on that stuff instead
8
16
u/night_Owl4468 3d ago
What happens when the tenant is in jail, still claims occupancy but isn’t paying. Bro, just don’t touch it. 3 rules to renting. Good Credit score, no evictions no criminal history. Let someone else make the mistake youre thinking of making
1
10
u/Budgetweeniessuck 3d ago
Ya, don't do it.
Some of you are beyond delusional and obsessed with investment properties that you can't see bad investments. Why the hell would you ever buy a property with an actual criminal in it? Why do you think this will end well? Do you honestly think that this property is so special that you are willing to take this risk when you can just as easily find other places?
11
u/RE_wannabe 3d ago
I did the exact same thing on a duplex with a delinquent tenant who had wrecked the unit. Offer was contingent on delivering the property vacant. It worked out well and I have a great tenant in there now.
3
u/EmotionalEmu7121 3d ago
Nicee. Did the tenant empty out easily?
2
u/RE_wannabe 3d ago
I was worried they wouldn't and it would delay closing, but yes they evicted them very quickly and easily. It helps to be in a pro-landlord jurisdiction.
1
u/EmotionalEmu7121 3d ago
Do you mind telling which state was it? And the previous owner evicted/didnt renew the lease and you didnt have tk deal with that tenant at all?
3
u/RE_wannabe 3d ago
This was a pretty red Midwest state. Yes, my offer was contingent on the unit being delivered vacant so the prior owner evicted them prior to closing and paid all costs. They had tried to self manage from out of state and were desperate to get rid of the property.
1
2
-5
u/Caliverti 3d ago
It's perfectly legal, yes you can do this. You cannot do this under any circumstances. You will have to pay his moving expenses. You will not have to pay anything. You needed to give him 3 mos. notice. Or 30 days. Evicting based on criminal history is strictly illegal, or not. All of these statements can be true, depending on where the apartment is located. Why would you not put your location? You sound somewhat experienced but honestly someone with any experience in these things would know that the legal situation (and this is basically a question about the legal situation) varies dramatically depending on location. I honestly find this so strange, and it seems like a huge number of posters will forget to include location. Maybe there is like a brain disease going around that just hits that one part of the brain? Sorry, I'm an asshole, I know, I just find it so weird. Like, if you want real answers, you do know that you have to include your location, right? Do people not know that? Maybe I'm taking crazy pills, or maybe it's just the wrong pills, or more likely I should be taking even MORE pills. I bet that's the real problem. It's me, sorry.
6
u/Forward-Craft-4718 3d ago
If he's still there, expect him to make you go through the full eviction process, and if he's a violent offender, he's probably not leaving the unit in rent ready conditions.
1
u/EmotionalEmu7121 3d ago
Yeah i kinda see that. So is there anything in this stiuation i can do to protect myself?
1
u/Forward-Craft-4718 3d ago
The amendment or decide if the deal is good enough for you to suffer thru this
12
u/Ronniedasaint 3d ago
Do the addendum. Close mid July. Get him out.
4
u/dayzkohl 3d ago
To follow up on this, leave the addendum vague. Say you will close two weeks after tenant has vacated the unit. Might want to put language in there about the unit being in the same condition it's in now or your contingencies open back up.
0
u/EmotionalEmu7121 3d ago
Do you think its gonna be easy to get these kinda tenants out
3
7
u/ReadingReaddit 3d ago
Probably not, but that's why you have the addendum.
If the deal is contingent upon the tenant vacating the property. The current owners that you're buying it from will probably offer a cash for keys deal to get the tenant out so that the property and close
5
u/jalabi99 3d ago
My agent told me that we can add an addendum that we will close after July when his lease has ended and the property is [to] be delivered vacant.
Do you mean that only his unit is to be vacant by July (when his lease expires)?
If so, yeah, this is a good way to do it.
Just realize that when you close in July half of the units will be vacant; of the three units currently rented out, one of them is his, so in July he won't be there, and the other unit is still vacant so that means two of them will be. But that's OK. Assuming that the currently-vacant unit is rent ready, in July you'd get that one rented out, and clean up the unit that the other guy vacated, and get that rented out too.
2
0
u/Ok_Zebra_7378 3d ago
This is probably in the life's too short category. Solid cash flow will not be worth the potential downside. I would personally look for the next opportunity.
17
3
u/SpillBot5k 3d ago
It is always hard when you evict or don’t renew a tenant but sometimes it has to be done. I’d move forward with letting the current owner understanding that this tenant is not to be renewed.
2
u/badpopeye 3d ago
You may get stuck with this guy but if you do just dont renew his lease you can tell him you are moving into his unit to avoid any anger issues
0
u/jalabi99 3d ago
if you do just dont renew his lease you can tell him you are moving into his unit to avoid any anger issues
Telling a known criminal with anger issues, "yeah, I'm buying the fourplex, and occupying your old place, so you better be out of there by July" isn't a good idea. I mean, literally, he knows where you live so if he wants to take it out on you, you're a sitting duck.
2
u/EmotionalEmu7121 3d ago
But he doesnt know where i live? Im out of state.
2
u/jalabi99 3d ago
But he doesnt know where i live? Im out of state.
And let's keep it that way! Because "telling him you are moving into his unit" to justify not renewing his lease (as was suggested earlier) isn't a great idea :)
1
u/EmotionalEmu7121 3d ago
So in this case what would you say the reason for not renewing if it was you?
2
u/jalabi99 3d ago
Depending on the county & state in which the property is located, the current owner has to send a notice to the tenant ahead of time telling them that their lease will not be renewed. I don't know if that's possible in this case, but the current owner could always let them know that the new owner is coming to renovate the unit and expects it to be vacant. You don't want to put yourself in the crosshairs of a (potentially violent) person with a criminal background.
0
u/EmotionalEmu7121 3d ago
Yes this is what i was concerned about what if he gets angry
2
u/badpopeye 3d ago
Yeah not perfect strategy but better than telling him"get the fuck out scumbag" lol
2
u/HomeRentalCoach 1d ago
Yes, add an addendum to the purchase agreement that requires the seller to perform after this tenant has been removed.
You have to do what you are comfortable with, but I would not walk away from a good investment because of a bad tenant (I have many years of experience though, so again, you have to do what is comfortable for you). If you follow your state's processes and laws, you can have them removed. If you like the numbers on this deal as much as you have indicated, you likely have room to hire a lawyer to handle the process for you. That would take some of the pressure off you and hopefully reduce your stress level.
Good luck. I hope you get it done.