Wholesale a property with a jerk for tenant

Wholesaling
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Wholesale a property with a jerk for tenant

Natasha Wilkinson
Dayton, OH · Member since 2013 · 29 posts · 2 votes

I'm hesitant to put an offer in on this duplex. One of the biggest reasons is because when the owner called to inform the upstairs tenant that I was coming to inspect, their phone was off. When the downstairs tenant attempted to inform the upstairs tenant, they didn't answer the door. I knocked but there was no answer. So I was able to do a walk through on the bottom apartment, but had absolutely no way to see the above unit. The downstairs tenant has been there for several years. The upstairs tenant has been there for only a few months and have been causing issues. The police had to be called because they have domestic disputes.... I need some advice, should i keep it moving on to the next deal?
The current owner lives out of state so he can't come and unlock the door himself.
My concern is that of course, an end buyer will want to inspect the top unit before he/she commits to buy and I would think its a deal breaker if the tenant is uncooperative?
thanks,
Tasha

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  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    13y

    It sounds like you are not the buyer but a wholesaler on this and wanting to sell to an end buyer.

    In the case you are describing as a buyer I would subtract the worst case scenario for the tenant upstairs with damages and lost rent evicting them.

    If the seller will not do that you need to move on. As a buyer for example I am not going to pay for a sellers problems. Depending on the eviction laws for the area and sophistication of the tenants it can take months and months to get them out.

    You can make a request that the unit be delivered tenant free on the upstairs unit as a condition of the sale. You have to look at how much TIME you will put into this for the money invested.

    For example would you take buyers around to see 60 properties to buy a house for only a 5,000 commission?? By the time you take them around and then split a commission with the broker and months of time you would be better of working fast food.

    I do not do residential but commercial only but I look at work put into and deal and what I will get out of it for the time invested.

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  • Natasha Wilkinson
    OP
    Dayton, OH · Member since 2013 · 29 posts · 2 votes
    13y

    Yup, @Joel Owens, the goal is to wholesale. Thanks for putting it into perspective like that. Seller wants $12,000, I was going to offer less. There are back taxes approximately $4,500. Its not in an desirable area (obvious by the price). With both tenants, the place grosses $765 a month. The downstairs tenant has been there for several years, the upstairs tenant are newer. Part of me thinks its maybe a deal, but the other part figures that after dealing with the upstairs tenant not allowing us to come in and view the place, it will be a big head ache to get it assigned and for the end buyer as well.

    Tasha

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