Putting an offer on a duplex where both units are rented out till April 2018. What should I be looking for other than usual. Can I put contingencies like,
1) need to pass city rental inspection(scheduling that will be tough with in 5 days).
2) Satisfactory review of all tenants related document, lease, income, criminal check, employment, rent payment history
Also any suggestion on what should I be looking for. This is my first multi family. Heavily influenced by podcast 285
If they are long term tenants, then I would check if they paid rent on time for the past 12 months. Other then that, I would smell profit. If the landlord doesn't know the going rate for rent in the area, it's your chance to squeeze out a few more bucks of profit! I did that a few months back. Using my knowledge about rent amounts, I bought a property a property for 37k. Not even the agent knew the fair market rent. She was convinced that the max rent for the area $700 dollars per month. Her knowledge was outdated by about 6 years (she even ran her own property management company - scary!!)! I knew I was able to get $1000 Dollars per month easily! The house was rented at $1000 per month within 3 days of vacancy and I had it appraised one month after purchase @63k.
Thanks Michael. That is what I feel too. The rents are low. I think there is a potential to get more.
Will post if I make any progress in this deal.