Time to pull the plug on a duplex contract???

[Pamela Morrison]

So we found a fully rented duplex that was open to a land contract deal. We viewed it on a snowy day. The keys didn’t work to any units but one tenant let us walk through. Also a small cottage with loft could be made into studio to rent.

They wanted 10 Yr, 40% down, 8% interest, $650/month payment on the land contract

Offered full price but changed the terms to 20% down, same payment and 5% interest. We negotiated to 5.5%.

After all expenses we cash flow $304

The ppl are hard to get a hold of, not tech savvy (older couple). And their realtor never answers their phone or emails. We’ve sent numerous addendums to extend inspection timeframes because no one will answer our questions. We finally got a meeting with seller and find out lots of maintenance issues. Lots of non permitted work so who knows if it’s correct. We are ok with, cuz hubs is a builder but would like to be compensated for condition of property. But turns out took forever to sign addendum, like two weeks. Basically contract is nonexistent until they sign.

They only offer us $800 off and say take it or leave it. We say fine cuz long term its good.

So we decide yes, cuz long run this makes money. They quickly sign a closing extension.

THEN that day after signatures, they tell us one tenant still hasn’t paid rent. Basically leaving eviction to us. They said today that figured February lost rent they would just take as a loss. And were never gonna tell us. We asked in one addendum to have all rents collected before close but again they conveniently didn’t sign.

I’m fine dealing with bad tenant but these ppl have deceived us. Really at our last straw and pretty ticked. Do we find a way out? Realtor says might be hard. Or are we just over reacting? This is part of the game right?