In Contract - going in blind.

[Kyle N.]

I'm looking for feedback how best to leverage this information in my negotiations to close. The property needs some work and my goal is buy/hold as this is my first property, House hacking, 2 units (2b/2ba). The unit has a detached garage/workshop that I could turn into another unit down the road.

• -1 unit occupied (seller knows the tenant), 1 unit vacant
• - Seller and Tenant are family, no leases
• -Tenant has a pet and is month to month
• -Agent said they didn't have disclosures yet, I put in a offer same day and it was accepted then he gave disclosure same day.
• -Listing and Agent communicated tenant pays $1750 disclosures say $1500. I would break even now.
  
• -Disclosures were basically empty; no reports, no leases, no inspections.
• -I did some info hunting myself with the city and the owner registered the building for section 8 in April 2019 but didn't mention this
• -Seller Questionnaire - Owner is not aware of anything going on in the property
• -The owner bought the property last year.

Since its my first time, what are your check and balances?

[Lawrence Leung]

@Kyle N. You have way too many unknowns for anyone to really help you as the most important missing piece of information is the exact location like @Mitch Messer pointed out. If the property is in San Francisco, you cannot unilaterally change the terms of the lease agreement. But if the property is located elsewhere with a less restrictive or non existent rental ordinance, you can give a 30 day notice and increase the rent to make your numbers work. But like @Arlen Chou pointed out, you absolutely need to understand how the rent amount was disclosed.  Was this just the seller stating a number or was it an Estoppel signed by the Tenant?  If the later, the Estoppel would substitute absent a lease. In San Francisco, it is very common to invest in properties where a lease was lost, never existed to begin with OR the tenants are not willing to share with you their copy. 

You also didn't mention performing any inspections, but you want to negotiate. With out knowing the condition of the property and what deferred maintenance or serious issue exist, it is hard to negotiate. Get yourself a home, pest and roof inspection. If you don't want to spend the money, make sure you have a GC go with you and visually inspect the property. Do you have any contingencies in place?