Puyallup, WA · Member since 2014 · 71 posts · 17 votes
Hi Everyone. I'm in the market to purchase my first rental property (a duplex). I'm pre-approved and excited to get started. I have been told by 2 separate realtors for 2 different properties that I probably won't be able to view the interior of the buildings until I have committed to purchase and the inspection is taking place. I'm all for preserving the privacy of the tenants, but this seems a little extreme. What is the standard practice when all units are occupied?
Investor · Virginia Beach, VA · Member since 2012 · 244 posts · 69 votes
11y
I generally accept not seeing every unit until I make the offer and having the inspection done. In my experience the outside always looks better than the inside of the building. So my walkaround gives me a good starting point for expectations. If the outside has damage or unclean I promise the inside is worse. If you are working with a realtor make sure that their is clause with your right to break the contract based on the inspection.
Rental Property Investor · Ithaca, NY · Member since 2014 · 180 posts · 80 votes
11y
I'm a newbie as well, but we've been inside all the rentals we've looked at. The listing realtor had to contact the owner to notify the tenants. Some tenants wanted to be home at the time, some weren't. Sometimes we had to wait a couple days if the tenant wanted to be home at the time. Maybe that's just my experience? It could be the market? And just fyi - we've looked at college student housing as well as some small towns. Don't know if I'd make the leap to buy without seeing inside. Good luck!
Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
11y
Tenants gets spooked when they know that a building is for sale, and they decide to move out. Even though, they have legal rights and the lease remains in place after the sale. It's real easy and your Realtor should be able to help you with this with no problems. All ya gotta do is have the Realtor write up an inspection contingency that allows you to view the property before the condition and terms of your purchase and sale agreement become final. And it should allow you the opportunity to either amend or cancel your agreement with all earnest money returned to you based on your findings with your inspection. Pretty standard stuff really.
Herndon, VA · Member since 2014 · 1k+ posts · 324 votes
11y
Are you working with a buyer's agent? If I didn't get to see the interiors, I would want very detailed and complete financial histories and expenses. How good are the photos in the listing and how recent are they? I would assume painting and carpets will be an expense on turn-over. Also I would want all the details on roof, windows, water heater, HVAC, etc.
If you have to make an offer sight unseen, make sure you have an easy out(with your earnest money back) and you leave yourself a cushion for unexpected repairs.
Investor · Virginia Beach, VA · Member since 2012 · 244 posts · 69 votes
11y
I generally accept not seeing every unit until I make the offer and having the inspection done. In my experience the outside always looks better than the inside of the building. So my walkaround gives me a good starting point for expectations. If the outside has damage or unclean I promise the inside is worse. If you are working with a realtor make sure that their is clause with your right to break the contract based on the inspection.
Scottsdale, AZ · Member since 2014 · 659 posts · 536 votes
11y
Can you imagine if every looky-loo that wanted to see the building went through the renter's apartments? Who would put up with that crap?
You get the property in contract for what you are expecting to see. The agent should represent what you should expect to see. If you don't like what you see during the inspection you can either renegotiate the price or back out of the contract.
Rental Property Investor · Richfield Springs, NY · Member since 2014 · 59 posts · 8 votes
11y
I agree totally with Brian L and Steve. I am looking at my first commercial property and the owner doesn't want to run everyone that thinks they are interested through peoples homes until he knows he has a serious buyer. tenants will spook very easily and if I don't end up buying it may be months til his place is back to normal. I am learning alot with this deal but it looks very promising. love bp
Puyallup, WA · Member since 2014 · 71 posts · 17 votes
11y
I definitely understand not disturbing the tenants. I have requested some additional interior photos from the listing agent. Some of these guys don't seem too motivated to make a sale. Business must be good. I've never worked so hard to try to spend $300k!
I definitely understand not disturbing the tenants. I have requested some additional interior photos from the listing agent. Some of these guys don't seem too motivated to make a sale. Business must be good. I've never worked so hard to try to spend $300k!