About to Buy a Duplex and Wondering how the Offer Process Goes

[Michael Clayborne]

Hello BiggerPockets!

I'm looking to buy my first duplex! It is leased for two years on one side and vacant in the other. 

I plan to House Hack with this Duplex. I have toured vacant side and noted the side needs rehabbing, but I haven't seen the occupied side. 

Multifamily properties are really hot in my market and I wanted to know how the offering/contracting process goes. the property is on the MLS and I am working through a realtor (specializes in first-time house buyers but not in real estate investors).

Can I make an offer before seeing the occupied side, get it under contract, then negotiate the price after seeing the other side? How does the whole process work? Thanks for your responses!

[Alexander Zurn]

@Michael Clayborne yes - you could do that. In order to do so, have your agent include a contingency stating something like "this offer is pending my approval of seeing the other unit."

While this will cover you, it would be better for you to just see the other side. Ask your agent to arrange this as quickly as possible. If you have done your homework and the numbers work, all you'll need to do is quickly go into the property and look around (as thoroughly as possible).

After THAT, you'll also have a regular inspection contingency in your offer. This is when a professional home inspector inspects the property. So IF you haven't seen the other side prior to the home inspector and you see that you don't like it after the inspection you are still legally allowed to pull out of the deal and get all of your money back (except what you paid the inspector).

Also - be sure to ask your Loan Officer & Agent about Oklahoma First Timer Home Buyer Program. A simple google search should bring you to their site. A lot of states offer great rates and some even offer down payment assistance so that you pay zero out of pocket (outside of a few fees like inspection, appraisal etc.).

Good luck!