Realtor · Norman, OK · Member since 2016 · 49 posts · 29 votes
Hello BiggerPockets!
I'm looking to buy my first duplex! It is leased for two years on one side and vacant in the other.
I plan to House Hack with this Duplex. I have toured vacant side and noted the side needs rehabbing, but I haven't seen the occupied side.
Multifamily properties are really hot in my market and I wanted to know how the offering/contracting process goes. the property is on the MLS and I am working through a realtor (specializes in first-time house buyers but not in real estate investors).
Can I make an offer before seeing the occupied side, get it under contract, then negotiate the price after seeing the other side? How does the whole process work? Thanks for your responses!
Lender · PA · Member since 2016 · 214 posts · 140 votes
9y
@Michael Clayborne yes - you could do that. In order to do so, have your agent include a contingency stating something like "this offer is pending my approval of seeing the other unit."
While this will cover you, it would be better for you to just see the other side. Ask your agent to arrange this as quickly as possible. If you have done your homework and the numbers work, all you'll need to do is quickly go into the property and look around (as thoroughly as possible).
After THAT, you'll also have a regular inspection contingency in your offer. This is when a professional home inspector inspects the property. So IF you haven't seen the other side prior to the home inspector and you see that you don't like it after the inspection you are still legally allowed to pull out of the deal and get all of your money back (except what you paid the inspector).
Also - be sure to ask your Loan Officer & Agent about Oklahoma First Timer Home Buyer Program. A simple google search should bring you to their site. A lot of states offer great rates and some even offer down payment assistance so that you pay zero out of pocket (outside of a few fees like inspection, appraisal etc.).
Lender · PA · Member since 2016 · 214 posts · 140 votes
9y
@Michael Clayborne yes - you could do that. In order to do so, have your agent include a contingency stating something like "this offer is pending my approval of seeing the other unit."
While this will cover you, it would be better for you to just see the other side. Ask your agent to arrange this as quickly as possible. If you have done your homework and the numbers work, all you'll need to do is quickly go into the property and look around (as thoroughly as possible).
After THAT, you'll also have a regular inspection contingency in your offer. This is when a professional home inspector inspects the property. So IF you haven't seen the other side prior to the home inspector and you see that you don't like it after the inspection you are still legally allowed to pull out of the deal and get all of your money back (except what you paid the inspector).
Also - be sure to ask your Loan Officer & Agent about Oklahoma First Timer Home Buyer Program. A simple google search should bring you to their site. A lot of states offer great rates and some even offer down payment assistance so that you pay zero out of pocket (outside of a few fees like inspection, appraisal etc.).
Palo Alto, CA · Member since 2017 · 226 posts · 95 votes
9y
Most often you want to see a tenant occupied home before making an offer. The seller will give more attention to your offer if you have knowledge about the property.
Sometimes a seller wants you to make an offer before disturbing the tenants. As @Alexander Zurn said you would make an offer contingent upon a property inspection report being acceptable.
It's rare but with the high price of land in Silicon Valley, some buyers buy a home without getting inside of all of the tenant occupied areas.
I am also a newbie investor in the Oklahoma area. I own 2 SFR properties in Northern Texas but none in Oklahoma yet. Maybe someday we can get together to discuss real estate investing and possibly "partner" up on bigger deals.
Just curious as to why your agent hasn't explained the process to you?
I'm both a broker and investor and frankly I would be embarrassed if one of my clients had to seek advise online instead of getting the scoop directly from me.
Realtor · Norman, OK · Member since 2016 · 49 posts · 29 votes
9y
@Jeff Keller That makes sense, thanks for your input!
@George Walker Congratulations on your two SFR, I look forward to it!
@Guy Gimenez That's a fair question, I can't really answer that for you, my agent is not one of much words, and we have been going step by step through the process, but I wanted to know more details about the whole process. I don't wish to make assumptions about my agent's process, but I want to be knowledgeable about what can and can't be done, and how everything works.
Wholesaler · Oklahoma City, OK · Member since 2012 · 34 posts · 25 votes
9y
Michael,
I would have to side with Alexander and Jeff you should see inside the other unit soonest.
It has been my experience that part time realtors move slow. Not saying yours is, just voicing my opinion.
My realtor would've let me know that she was working to get me in and that she would call me with a time. Now that I think about it she would've had it set up for me to see both sides. She knows I don't like to go back.
Norman is a hot area due to the OU campus. I've done many rehabs there.
Note - Don't park on the grass as Norman will give you a ticket. They absolutely don't care if you are rehabbing.
As previously stated yes you can put in an offer before you see the other side. Your realtor should have gone over this with you.
Hope this helps. If I can answer any questions please ask.