First 4 plex but Seller is lacking proper financials

[Kinju Dudhia]

Hello,

I have placed an offer for my 4 plex which has been accepted. I am excited!!!! The property has 4 families which are long term renters. 3 families have not kept props very well. Seller also does not have proper financials. It’s more like handshake and good faith method between seller and renter ( or that’s what I am getting the impression).

Should I be very careful moving forward if I don’t have proper financials from the seller? OR it’s not a big deal and can be dealt later on using a property manager?

[Nathan Gesner]

Definitely be careful but this is not a unique situation. Most investors only own 1-2 rentals and they don't run them properly or professionally.

do some research on an estoppel agreement. That's a good way to ensure everyone is on the same page prior to taking over. I would also recommend you prepare to get rid of the existing tenants and start fresh because the seller probably never screened them or trained them.