This is a great forum, I’ve already learned a lot from it!
I do have 2 questions though, which may have been covered in previous posts or other boards.
I am planning on purchasing a duplex and moving in to one side of it. If there is an existing tenant can I evict him (or her) with little or no hassle or will I have to go through a long and potentially expensive process?
Secondly, in the future I plan to form an LLC with some associates to purchase several income properties. How does the LLC get the title to the property? Does someone within the LLC purchase the houses initially then deed them to the LLC?
I will thank you in advance for the time you put into responding to this.
More information is needed before the eviction question can be answered. Do the tenants have a lease? Have they violated any of the terms? Is their rent current? You can’t just evict someone with a valid lease just because you purchase a property. If there is cause to evict the tenant (ie. they aren’t paying rent) then you need to educate yourself on the laws in your area so you know what you can and can’t do. The laws in my state won’t be the same as the laws in your state.
As far as the LLC buying properties, the scenerio you described is how most people I know handle it. Although Buyer X isn’t actually allowed to deed the property to an LLC when the mortgage is in the buyer’s name, I would imagine that as long as the mortgage payments are current, the lender would never know. However, if they do find out, you will have to put the property back in the buyer’s name.
Tenants have rights, sometimes more rights than the owners…lol. Look at state laws, Leases, etc. as Missmbb stated.
I loan the cash to my LLC and the LLC buys the property generally. I do a promissory note and record the mortgage in case the LLC gets hit. Others just deed it over to their LLC.
Where are you?
An eviction when you ahve to force someone out thru legal proceedings.
If you tenant is on a month to month or no lease at all, just terminate their tenacy (occuring to local laws). You do not need to give a reason. Only if they result to move do you have to evict them.