Duplex and offer contingencies

[Mike T.]

Hello,

I am placing an offer on my FIRST duplex and the pro forma lists a NOI based on the rents listed but doesn't take into account expenses etc. Obviously my offer is based on the NOI taking into account tax, insurance, utilities etc. I used a 10% cap rate to determine what I am willing to pay, minus about $20,000 for paint and mild rehab on both units. I have a contingency for financing, and inspection and also want to place one for review of at least 2 years of leases to verify rental income and NOI. Is the "lease contingency" an addendum since it is not included in most, standard offer contracts?

Sorry if this seems trivial. The seller will not allow people to look at the property unless an offer has been accepted so I want to make sure I am covered with an exit strategy once I place the offer.

Thanks,

Mike

[Wayne Brooks]

There should be some blank lines on the contract where you can add in additional terms, or attach an addendum if not.

[Mike T.]

Hey Wayne, I did see the the space and added my comments, will add addendum as well. Thank you!

[Tom Goans]

@Mike T.,

Please Seek Legal Professional Advice

Legally, legal advice can only be provided by a licensed attorney in the state where the property is located. You should only consider legal advice that is provided by an attorney you hire. Any other legal advice is ILLEGAL and may be very incorrect.

Do not rely on unlicensed legal advice.