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Updated about 11 years ago,
Planning to view a small multifamily - what to ask?
I've found a duplex that i'd like to go view. Based on the pictures and description up on MLS it looks like it would require minimal work. However, I'd need FHA financing and it appears that this duplex is fully occupied and closing is subject to tenant rights. I figure this means I would need to honor any leases currently in place.
1. Other than asking about the leases in place, are there any other questions I should ask regarding the current tenants, history of the property, or anything else?
2. Will the closing subject to tenant rights affect my ability to get financing? I believe I need to move in within 60 days to get owner occ financing.
3. Do i need to be preapproved by a lender before going to view the property? It costs about 2x my annual (stable) income and i have good credit so I don't foresee qualifying for the loan being a problem except for potencially the downpayment.
This duplex looks quite good and has been on the market for almost 6 months with multiple (small) price drops. Is it possible that no-one has purchased it since they can't get FHA financing (due to long term leases) and it's too small to bother for an investment loan? On the mls it says that FHA and VA financing is accepted.
Thanks!