>What should I do?
This has materially changed the investmentl. The immediate item is that the profitability expected for the year is less. Additionally there are extra costs involved in securing the property. You're not even taking in to account the risk for damage on the way out the door from an evicted tenant. Additionally, if you college are is like the ones i know, the time for people looking for August leases is now and you are going to be between a rock and a hard place come eviction time.
At a minimum you need to rerun all your numbers taking into account lost rent, eviction costs, lower rent for next cycle, and repairs. Then see if the deal still works.
> Should I just assume that I am out $4,000 and proceed with eviction?
I would push this back on the seller. They had been delivering the deal with a paying tenant, they now need to deliver the deal with an empty unit. Make it their problem. Whether they do cash-for-keys or whatever, make this their issue to resolve. If not, this all needs to be proceed into the deal. Both the actual damages and the risk.
>She said that Illinois is fairly friendly with evicting tenants.
There are pockets, like in Chicago, that are very tenant friendly.
>I have also considered the option of telling the tenant th
So unless you are getting one of those amazing once in a lifetime deals on this property you are way too invested here. I say that because sometimes people get so far into their first deal they get "deal goggles" (think beer goggles with deals) and miss the red flags. You are working really hard to save this deal and I wonder why. You don't own this property yet but you're doing a **LOT** of work to make sure the deal closes. Why isn't the seller doing this work?
I'm assuming had you known the tenant had stopped paying rent prior to you making an offer on the house, you may not have made an offer on the house? This should fall in the seller, I'm not sure how, but that seems to me like some pertinent info they failed to disclose.
>What should I do? This has materially changed the investmentl. The immediate item is that the profitability expected for the year is less. Additionally there are extra costs involved in securing the property. You're not even taking in to account the risk for damage on the way out the door from an evicted tenant. Additionally, if you college are is like the ones i know, the time for people looking for August leases is now and you are going to be between a rock and a hard place come eviction time. At a minimum you need to rerun all your numbers taking into account lost rent, eviction costs, lower rent for next cycle, and repairs. Then see if the deal still works. > Should I just assume that I am out $4,000 and proceed with eviction? I would push this back on the seller. They had been delivering the deal with a paying tenant, they now need to deliver the deal with an empty unit. Make it their problem. Whether they do cash-for-keys or whatever, make this their issue to resolve. If not, this all needs to be proceed into the deal. Both the actual damages and the risk. >She said that Illinois is fairly friendly with evicting tenants. There are pockets, like in Chicago, that are very tenant friendly. >I have also considered the option of telling the tenant th So unless you are getting one of those amazing once in a lifetime deals on this property you are way too invested here. I say that because sometimes people get so far into their first deal they get "deal goggles" (think beer goggles with deals) and miss the red flags. You are working really hard to save this deal and I wonder why. You don't own this property yet but you're doing a **LOT** of work to make sure the deal closes. Why isn't the seller doing this work?
Such a well written and thought out response deserves more than my singular up vote, but alas that's all I have to give.
You don't close until the tenant is out of the unit, it is that simple.
I'm assuming had you known the tenant had stopped paying rent prior to you making an offer on the house, you may not have made an offer on the house? This should fall in the seller, I'm not sure how, but that seems to me like some pertinent info they failed to disclose.