Due diligence on accepted off market Duplex

5 Replies

BP World!

I just got my first off-market real estate deal accepted today on a duplex! Im stoked and am now in the due diligence phase. I am scheduling inspections and asking for verification of financials. I’d like to know if anyone has recently purchased an investment property where the existing tenets leases have expired. How can I confidently verify rental income? Can I legally request bank statements?

The current owner pays utilities and I have requested all utilities bills for the last three months. Is this sufficient enough?

I have the tax records and have a quote for insurance. There is no HOA, no lawn maintenance or other miscellaneous expenses.

Have I missed anything in my financial due diligence?

Thank you for the help

Russ

Hey Russ I would get an estoppel for each tenant. It will protect you from false claims against deposits or rent amount. You can get one on biggerpockets.com/files. I would ask for atleast a year of bills for utilities you might see that is underinsulated and bills sky rocket in the winter. 

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@Russ Marlborough I always assume tenants will get evicted when I inherit them and if they don’t I view that as a win.

You should make sure the leases are month to month or “verbal” or what. A lease expires, usually goes month to month. Check state laws