Schedule E (Due Diligence)

[Bill J.]

How concerned would you be if a seller refuses to produce a schedule E upon request?

We are almost ready to sign a contract which will kick off a 14-21 day due diligence period (Still debating) but the seller is already saying no to a schedule E request.

The deal is a quad at 170K in good shape inside and out....Currently fully rented at 495 per unit. I have used the 50% rule for projecting expenses which is much higher than what they currently say but that is why I want the schedule E.

His refusal leads me to believe there is more expense he does not want me to see and that I have missed on my own so far or he is lying on taxes and does not want me to see that.

What are the scenarios that might be a legitimate reason for refusing? Don't say privacy because if you are buying & selling there has to be some compromise there.

Thanks...Bill