I have a duplex I’ve come across that appears to be a screaming deal on the surface, but there are nuances to it I’ve not dealt with before that give me pause.
It's an FSBO where the owner is an investor looking to "retire" and offload a bunch of properties in my area. Most are in less than desirable areas, but one in particular is in an up and coming neighborhood I'm familiar with.
The property is fully rented out on a month to month basis to existing tenants. According to the owner it hits the 2% rule, but I’ve asked for evidence. The owner is asking for offers by the end of the month at which point he will go with the highest offer, preferably all cash. He also mentions in the listing no agents or wholesalers.
Any red flags pop up for those with more experience doing fsbo? Anything else to keep in mind or watch out for?
PS: I would need to finance the deal but have enough for 20% down plus reserves - so I may need to get creative if he truly requires all cash.
I like it when the property has tenants already in place. When you asked the owner for the leases was he able to provide them? Have you walked the property and looked at the condition/repairs needed? There is nothing wrong with purchasing from a FSBO your attorney and title company will make sure there are no shenanigans. Try asking the seller if he would hold the note until you can refinance it and maybe you can make a larger offer than anyone else, if its that good of a deal going over asking price might be worth not getting it at all and could entice him to take your offer instead of the lower all cash offers.