Seller kept horrible records

[Chris Seveney]

Found an off market multi family that a women wants to sell (she is elder and husband recently passed) The duplex has two tenants but she noted they have been on month to month for years. Told me what they pay but had no lease. Also she has no financial records as she gave discounts for paying cash etc. Is there any other way to analyze the deal ? Based on current market rates in the area it would cash flow $200/door after putting in 10% capex/PM/repairs (10% each) Should I be suspicious and is there a way to protect myself. I don't have accepted offer etc. Any advise appreciated Thanks

[James Wise]

Very common that sellers of duplexes keep little to no records.

I would not focus my attention on how the property performed in the past. I would focus my attention on how you believe it will perform in the future. With an investment that small how this lady operated it in the past is irrelevant. What matters are the comps and the rental price points you know you will be able to receive.