Do I Purchase A Duplex Or Resign My Lease?

[Account Closed]

Seems like a simple answer, but we have a couple of complications: 1. Lease term ends on December 31. 2. We don't have funding lined up, nor do we have a property under contract- just a plan to purchase one. 3. We could stay in in-law's house during transition period while securing home and funding, but with a two-year old, spacing would be tight and we'd have the added expense of a storage facility for a few months ( in spite of saving in rent). 4. I am having surgery in a week and will be unable to help with the move for at least one week!...maybe more. We definitely know the benefits of trying to get a duplex, but don't want to rush into an ill-advised position because we don't want to have to break our lease in the middle of the new lease term when we find a great property. Any advice on this dilemma is greatly appreciated by us newbie investors.

[Neil Schoepp]

My two cents. Sign the lease.  Keep your plan to purchase. Keep adding funds to your down payment and reserve fund. 

Very simply put if you move in with the in laws (or anyone for that matter) you will be under the gun to find a duplex. That will lead to unneeded pressure.  The hat pressure means bad decision making and you may settle for something under par. Your better off signing the least. This will allow you to find the perfect property that the numbers are great on as oppose to just good. 

Talk with your landlord and let him know what's going on. Everyone is different but I for one would let you break the lease if you found a property and enter into contract. So if he won't go month to month because you can walk at anytime for any reason then maybe he will write a clause into the lease that allows you to brake the lease with a signed contract and that you actually close the deal. If one of my tenants came to me and said they wanted to buy a duplex I would help them every step of the way. 

I hope your surgery goes well. You'll find your duplex or maybe even a Tri or Quad. Just don't rush it.