OK, my offer was accepted. Now what?
I found a duplex for $199k and I put in an offer and it was accepted! My realtor is having the inspections done this week. I'm giving them my earnest money tomorrow. One unit is vacant and one is occupied. I'm waiting to find out the story on the existing tenant. They have crap all over outside including a broken car in the yard. I'm not sure what their payment history is or household composition or lease terms although I do know that they are month to month. All of that tenant information should be communicated to me this week.
If the inspection is OK and the sale goes through then I'm planning to move into the vacant one and start fixing it up as an Airbnb. Its a tiny studio with a storage room that is raw but could potentially become a legit bedroom. I think it could be super cute as an Airbnb. Then I will probably move into the 2 bedroom unit and fix that up, refinance out of the FHA loan and rent that out.
What advise would you give me at this stage of the game?
Under no circumstances should you accept the building with that tenant in place. Make it a condition of the sale that both units be delivered vacant. If there is no lease, there is time for your seller to move the tenant out.
Seriously. Do it. You will regret it if you do not.
I would agree that broken down cars in the yard would be a red flag it might cost a bit of money in terms of lost rent in the short term but of the long term not having to deal with a potentially uncooperative tenant will save a lot of money.
Sounds like a Macho man type. Would you be comfortable with him right next door....................lol. Id do as previous guy said , have him booted out or @ least get a discount. Remember his friends are probably just like him. Imagine dealing with them 24/7 i just dont know why a cretain kind of person would want to live life like that. IF its the 5% down FHA then OK. but still .........................
Advise can only be given if you quote numbers. Looks like you ready to spend quite a lot on remodeling.
Originally posted by @Aaron K.:
I would agree that broken down cars in the yard would be a red flag it might cost a bit of money in terms of lost rent in the short term but of the long term not having to deal with a potentially uncooperative tenant will save a lot of money.
lets Face it you not going to get ANGELs busting down the door to rent duplexes. She might as well get training right from the get go.................lol.
I created a new post with alot more details. Here is the headline of that post if you want to jump to that one and get more info:
Need help analyzing this duplex deal