:help
I’m a first time homebuyer looking at a 4 family that I’d like to owner occupy. The agent says that I won’t be able to see two of the units because the tenants won’t allow it. Of course, the agent says the units are identical. I’m very apprehensive to make an offer on my first property without seeing the units. To make things more interesting, this is a short sale. Is there some type of contingency or clause I could put with the offer? What would you do? Thanks.
JP
You absolutely need to see these units before you buy. The tenants reusing may be the reason the owner is selling. They sound like headache tenants to me. How would you be able to perform routine inspections if you owned it? I’d pass if I could see everything.
I agree. You always look at the units before you purchase. Seems to me the seller may be trying to hide some issues by using the tenant excuse.
…and on the way by, you need to slap the current landlord for allowing the ‘crazies to run the asylum’!
Keith
This is not unusual for multi-units. In my market (Southern California) this is the rule rather than the exception. Usually these are advertised as no showings until an offer is accepted. When you make an offer, insert a contingency clause that gives you the right of inspection of all the units and, if they do not meet with your approval, the right to void the Agreement.
Why should they let you inspect the place before making an offer? They would have so many people walking through all the time just to see it. Make an offer based on the numbers you get from the realtor. Then you have at least 30 days (Due Diligence) to request proof of those numbers and rent rolls, expenses, etc. for the past 2 years. If they all work out, then you do an inspection, and get the pest guy in there, and the building inspector, etc.
If the financials do not work out, or cant be proven, there is no reason for the inspections and you move on to the next property.
This is normal.
You don’t want to call tenants 20x to show the place.
I think the agent means you won’t be able to see ALL the units before an offer is accepted. Once it is accepted it is only normal to go and see the rest of them.
And you are not bound to anything. You can walk away if you see a unit with mold all over the ceiling that is falling down with cat piss stains and termites in the floor.