Viewing a Triplex tomorrow, any tips?

Question

I'll be viewing my first home tomorrow, ever. My wife and I are planning on house hacking so this will also be our primary residence.

1 building has 2 units. Both 2 bed 1 bath.

1 smaller home as a 1 bed 1 bath.

Home is a short sale.

We will be viewing the residence with the "Owner", their agent, our agent and my father who is a licensed contractor of 30+ years.

Any advice on what to look for or what to ask? Anything anyone missed and only noticed after they moved in? Thanks for the help.

Jeff Copeland · Answer

@Todd Fithian - That's actually a great tip - always visit any property at different times of the day. Some neighborhoods/streets have a completely different vibe in the afternoon (when the kids are out of school and wreaking havoc) and evening (when the adults are home from work and wreaking havoc)!

@Austin Keelen - Aside from the obvious look and feel and condition of the property...my word of caution would be about the short sale situation. Short sales are not for the faint of heart.

The seller/owner will likely accept just about any reasonable offer - but that doesn't mean the lender/bank will approve it.

If there is no bank-approved sale price, the lender/bank can take literally months (90 days is not uncommon) to come back with an answer - and often their answer is MORE MONEY - especially in an appreciating market.

You may find a great deal. But that possible reward comes with the risk tying up your escrow deposit and stalling your home search, only to have the deal killed by the bank 2-3 months from now.

If you decide to proceed:

1. Offer as little earnest money as possible (you may not see it again for several months);

2. Make sure your offer/contract has a short sale addendum, and review it carefully. How are dates counted? i.e. When is your earnest money deposit due, and do your inspection period and financing contingency start on the contract effective date, or upon notification of bank acceptance?

3. Know who is holding escrow and what their procedures are for getting your deposit back if the bank kills the deal.

Good luck!

Lee L. · Answer

Talk to the tenants if possible. Find out what kind of issues they have with the property (ie: leaks, hot water, termites, rats, noise, crime, what they think about the other tenants, when their last house call/repair was, what parking storage/storage goes with which unit, etc) You can get a lot of insights and points of further investigation this way.

Todd Fithian · Answer

This isnt a question, or anything to be asked, but Something I wished I would have done before buying our first duplex was to go and listen closely to the surrounding dog barking.  Might sound dumb, especially when excited to look at the place, but listen listen listen.  Possibly even go back at 9ish at night (seeing as though you could potentially be living there), and listen then as well.  I didnt do this and have lost one potential tenant to a neighbors dog, and have had my own bad bad thoughts wide awake at 2am on how to handle the barking.  But besides that, thats just my rant, I hope it goes great and works out awesome for you guys!  Good luck!

Austin Keelen · Answer

Jeff, thanks for the heads up. I've been researching the short sale process and it does not look enjoyable. It was actually recommended that I use a lawyer to communicate with the bank. Your tips are welcomed knowledge though.

Austin Keelen · Answer

That's actually great advice that I didn't think of, thank you.

Viewing a Triplex tomorrow, any tips?

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