Realtor · Columbus, Franklin County · Member since 2026 · 171 posts · 67 votes
A lot of Columbus duplex listings say "do not disturb tenant," and the occupied side can only be seen after an accepted contract. That's normal, but it means part of the deal gets priced blind. Here's how I handle it on value-add 1-4 units:
1. Budget the unseen unit at the bigger number. If the vacant side needs a full rehab, I assume the occupied side does too until I see it. The inspection either confirms it or gives me room to renegotiate.
2. Write access into the contract so the occupied unit is inspected inside the inspection period, with proper notice to the tenant.
3. Ask for each lease, a 12-month rent ledger and the deposit amount for every unit. I'd rather see deposits than hear about them.
4. Ask for a tenant estoppel where the tenant will sign one: rent, deposit, lease end date, and any prepaid rent or side agreements.
5. Check the deposit math. Under Ohio law (ORC 5321.16), the part of a deposit above $50 or one month's rent, whichever is greater, earns 5% interest a year once the tenant has stayed six months. I ask how that has been handled and make sure the deposits are credited to me at closing.
6. Underwrite the in-place rent as it is, not at market, until that lease ends.
What else do you ask for before closing on an occupied 2-4?
This is a great checklist, BJ — and the occupied side is exactly where buyers get surprised. Two things I'd add from the Memphis side. First, ask for proof of rent actually hitting the bank, not just the ledger. A ledger is what the seller says happened; deposits are what happened. Second, get the tenant file: the original application and screening, any notices or late-payment history, and whether there's a pending eviction or a notice to vacate you haven't been told about. I'd also get an insurance quote early, since an occupied property with deferred maintenance can price very differently than a vacant one. And your point about access in the contract is the big one — if I can't get inside during the inspection period, I want a credit or a price that assumes the worst. What does the vacant unit look like so far?
BJ, Ametria's point about proof of rent is a good one. I'd add two requests that are about expenses rather than the tenant. First, how the utilities are split. Ask which meters are separate, who pays heat and hot water under each lease, and for twelve months of the owner-paid bills. On an older duplex, an owner-paid utility can move the real NOI more than the rent difference you're underwriting.
Second, the occupied unit's mechanicals, not just its finishes. If each side has its own furnace and water heater, ask for their ages and any service records, and have the inspector look at them on the access visit. A tired cosmetic unit is a known cost; a failing boiler or panel on the side you couldn't see is the kind of surprise that justifies renegotiating.
I'd also ask for any open maintenance requests or city notices on the property, since those tend to surface only after closing otherwise.
Great breakdown, BJ. Great points already made here.
One thing I’d add is verifying who is responsible for utilities and whether they’re separately metered. I’ve seen that make a pretty significant difference in cash flow, especially on older multifamily properties.
I’d also want to know if there are any outstanding maintenance requests or recurring issues with the occupied unit. The rent roll might look great on paper, but deferred maintenance can change the numbers quickly.
BJ, I buy single-family houses in Memphis, so I will keep this to how I underwrite what I cannot see. I underwrite the rent that is actually in place, not the rent I hope for, and I budget the unseen unit as if it needs the full rehab. On my deals that is around $40,000, and if the numbers do not work with that budget in, I pass. I also ask my lender in writing which rent figure they will use on the refi, because a DSCR refi at 70 to 80% LTV is sized off the ARV and the rent the lender will count, not the old lease. Get the lease, the payment history, and the move-in photos in writing before you close, and put a walk-through and a full inspection in the contract. If the seller will not give you that, the deal is telling you something.