I am a college student hoping to do my first deal here soon.
I have one duplex that I really like. Both units are currently rented with one unit on a two year lease with the other on a month-to-month rental agreement. I have the cash ready to buy and want to make things happen quick.
My question is, what info can I legally request from the seller before submitting an offer (ex. copies of current lease, etc.)? What are some questions or other info I should definitely be asking of the current seller? I currently was able to discover his motive for selling (moved out of the area) as well as the current lease situation as I said above.
I'd appreciate the help!
I’d find a good agent to help. I realized early on that a good one is worth it.
You can request whatever you want. The seller may or may not comply. I received leases and expense details prior to making any sort of offer from a few different properties.
Originally posted by @Trevor Dominique :...What are some questions or other info I should definitely be asking of the current seller?
I will assume you are certain about the numbers on the property itself and you are obviously inheriting tenants.
- Is there anything outside of the tenants' leases that I should be aware of (i.e. - verbal agreements between seller and tenant)? For example, you want to know if the seller has been doing snow removal for the past winter because one tenant broke his leg, even though snow removal was the tenants' sole responsibility.
- What issues, if any, have you had with the current and past tenants?
- Are there major repairs needed that you (the seller) are aware of?
- Are there any liens on the property? (I imagine your title company would take care of that, but good to ask before you even submit an offer.)
- Do you have any other properties for sale? Even if you are not interested in more than one property, you could potentially get a better deal.
@Michael DeVowe Yes I am certain about the numbers. (Cash flows around $160 factoring including loan payment, insurance, property taxes, 5% vacancy expense, and 15% of rent for CapEx and Repairs. When we viewed the properties, it was clear the tenants kept the place clean and in good shape.
Thanks for the potential questions. Want to be sure I communicate everything necessary with my agent before making an offer.
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