Expert: Dick Dennis - 7/9/2006

Question
I have a tenant who recently signed a new lease on a property I own in New Mexico.  Due to some medical problems and the resulting medical bills I need to sell the home to access the equity.  (I am unemployed right now or I would just refinance and take cash out as I would very much like to hold onto the propety.)
Can I sell the property witout repercussions from the renter due to the lease as long as he is given adequate notice regarding my intentions?

Answer
If you sell the house, you're going to have to sell it as a rental. The property is going to change hands subject to the existing lease. That means you will be looking for a different kind of buyer. A buyer who would want to live in that house would have to wait until the lease expires.

But you have another problem. The market being what it is these days, you're going to have a problem selling the house in any case, whether for an investor who would take it with the tenant, or someone who would want to live in it. There are not that many buyers around who would want to live in that house and own it under those conditions, so you are probably better off looking for an investor. Or, just hold on to the house until the lease expires. A rental is always hard to sell to someone who has not intentions of using it as a rental.

I do wish you well, Deanna.

Dick Dennis                dixiedee13@aol.com