Real Estate Consultant · Miami FL · Member since 2020 · 36 posts · 7 votes
I'm looking to buy a quad/four plex on the market in Austin TX. The property will be purchased at 750K, but I will only place 5K into the deal at the end of closing and etc. I'm slightly worried about the "As Is" terms and the seller NOT providing a Seller Disclosure. Is there any advice about this deal I need to know. I'm know it will be hard to find out "why" the seller does not want to disclose any information, but besides a home inspection is a good option for me. Do you think I should leave the deal alone due to no seller's disclosure?
Rental Property Investor · Austin, TX · Member since 2016 · 317 posts · 257 votes
5y
Four unit dwellings do not require sellers disclosure so any seller completing a sellers disclosure is just opening themselves up for more lability in the sale. Many sellers of these units are not able to complete an SD because they have never been to the property (out of state or otherwise absentee owners).
How on earth are you only putting $5k into this deal?
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
5y
#1...on multi SD is not required in Texas. Good practice...good lawsuit avoidance, great risk reduction tool, but not required.
#2...in Texas and probably most places almost all properties are sold "as is". If they state that up front though I find they know something that needs repair and are telling you up front they don't want to fix anything. Doesn't mean you find it, ask them to repair, that they wont repair, but also don't be surprised if they won't repair.
#3....I would carefully inspect the property with your realtor before you pay for home inspection. What's the status of the big 5?
#4...On almost all multi I expect to see deferred maintenance....too many investors don't keep them in good repair and just try to milk them into the ground.
#5...some investor think...I never lived there....I've never seen the property...how can I fill out seller's disclosure? As a realtor I always want them to fill out something. They can check some of the boxes.....they can fill in things like ---Never seen the property, never lived there, etc and leave what they don't know blank. I think that is better disclosure, than no disclosure.
#Remember that people buy houses all the time without and seller's disclosure...and without ever seeing the property or inside the property. Think about foreclosure sales....but there are other circumstances too.