Multi-family duplex | First time investor - Seeking Advices
Hello—
I'm a first-time investor here. We found a duplex property with tenants. Per our agent, rent is ~ $1500 for one unit and ~ $1700 for another. FYI, we don't feel like our agent is really investor-friendly.
Can we request a financial summary/statement from the seller before making an offer? Are there any additional due diligence steps we should be doing before submitting an offer?
We appreciate any advice and TIA.
Hey Maungmaung,
You can definitely ask for the rent rolls for the seller and after you're under contract and during option period you can ask the listing agent for copies of the lease agreements. Before you submit an offer I would also make sure you know all the additional expenses that you may me overlooking, is it separate metered for water gas and electricity. If water is common, is that billed back to the tenants or you as a landlord have to pay for it and that will eat in your profit.
If the numbers look good after you get a good picture over all the expenses I would move forward with an offer.
I hope this helps.
I would also consider why are they selling the property? If they had great tenants in place and the investment is working why are they selling? I'm usually hesitant to inherit tenants that I didn't have a say in screening. However, as mentioned above, seeing the rent roll , may help shed light on what kind of tenants you have.
