Should I Buy The Duplex I’m Renting?

Question

I am 2 months into anything Real Estate/BiggerPockets. Soaking up any and all information I can. My wife and I (with 2 little ones) are currently renting out well under the average in the area. Landlord has many properties and is in no rush to fill the other side. We know that we want to get into Real Estate as soon as possible. Our lease is up for renewal this month and we are wondering if it would be a perfect time to offer to buy both sides? It is probably 10yrs behind on remodels so would need some interior design work, possibly just a wall or two knocked down. We are interested in the BRRR method. My question is, since we are new, what should we be asking the landlord or banks when offering to buy the place? Not sure how old the place is, just know that we are renting $300-400 less than anyone in the neighborhood and don't want to inherit a crazy tenant when he fills the other side IF it is a good deal we get the chance to buy it.
Any advice is truly appreciated! 🙂

Jason Wray · Answer

If you have good to fair credit I would say check with a bank/lender to see what you qualify for so that you have that as an advantage.  Some buyers can really help by getting you into a note with little to no money down.  But if they are inflating the value because they have a personal attachment or they were told by a "Non-industry" friend or neighbor.  That puts you into a position of buying an over valued home.  As a banker I always advise to get a free quote and ask if the bank can do an in house AVM to give you an idea of comps and value.  Not to mention rates are at an all time low you may qualify for a rate lower than what they are willing to hold.  Let me know if you have any specific questions.