Making An Offer When You Don't Have a Full Picture of Financials

[Dacia Ray]

I'm working on finding and closing on my first MF deal, focusing on duplexes. I've found one that I think is a good deal, but I don't have the full picture and getting info from the current owners and tenants has been... a bit slow. I've run the numbers with a few different options for financing and they work based on some research I have done, but I don't have the real numbers. I know the current owners have no mortgage, and I've done the research on the taxes, insurance, and utilities. I found out what one of the units rented for five years ago, and I know what the going rents are for the neighborhood (cash flows on both numbers), but I don't know what the current rent roll is or what kind of leases the tenants have. The owners' son, who is a commercial RE investor though not in my area, is managing the sale and my agent has been communicating with him and trying to get this info. I'd been waiting to see the property until I know this info and make sure its worth my time, but I think I'm just going to do the walkthrough and see what. 

So the question is - how do you make an offer when you don't have the full financial picture of the building? If its ok after a walkthrough should I make an offer contingent on inspection and due diligence? Is the messiness of the communication indicative of bigger problems and setting myself up for a world of pain with the tenants, or am I overthinking that and its really just a problem of elderly owners with their son trying to help sell a property in an area he doesn't specialize in? Obviously that last set of questions is pure speculation, but I'd love to know what others would do in this situation.

[Steve Racicot]

I personally would not worry so much about what the owner gives you for rents.  If you have done your research, use those numbers. They are probably more reliable.    You might get an honest answer from the owner however, I would be skeptical of that. 

Rents always go up when there is a new owner. It is a fact of life. 

If he is not going to give you the leases for the current tenants, then the tenants should give it to you. You may be surprised to find out, that there aren't any.