Advice for possible first time buyer
TLDR at bottom.
I put an offer in for a two family property in the Albany, NY area. The property was listed as vacant. When I went to visit the property I found a woman living in the upstairs space. I figured, okay maybe they leased the apartment recently. I liked the building so I put in an offer and it was accepted.
I asked for a copy of the lease. The listing agent responded "MTM." I asked my agent for more information. It turns out the person living there is mentally handicapped but she was a tenant for a long time. Her partner passed away recently. The owner is letting her stay there until they can find another place for her to live. I was assured that the building would be delivered vacant.
Some time goes by. I thought I was waiting for my clear to close from the lender. After awhile I am notified that we can set a date so I assume the building is vacant. I ask for a final walk-through. They tenant is still living there. I am now being told that they found a place for her and she will be out by the 30th. I told them I'm not going to close. Now my lender is telling me that I lost my rate lock. He said that my rate lock was extended twice because the seller's lawyer delayed because of this tenant.
At this point I'm very annoyed that I was not told that property was still occupied. I notified my lawyer that I may want to back out of the deal. I don't like that the tenant is still there but I'm as annoyed if not more that it was not communicated to me. I think they would have let me close with the tenant still there if I had not asked for another walk-through.
There some minor repair issues as well.
If it matters the price is $87,000 (plus ~$10k in repairs) for 2 units that could rent for between $1400-$1700. This is my first deal. Any advice would be appreciated.
TLDR: Was lead to believe the building was vacant. Mentally handicapped tenant is on the 2nd floor not paying rent. Closing was delayed. I think I want to back out of deal.