Need some advice on a potential multifamily property

[Tracy Munger]

We put an offer in on a 4 plex that is currently being used as a by the week rental (mostly). The numbers the owners gave us for current rent prices and utilities is based off of that model. The price of the property is at a premium because of their claimed high rate of income and mostly turnkey business model. However, we do not intend to continue the weekly rental practice (for various reasons). We want proof of financials to to mostly see vacancy rates they've experienced to compare the utilities (all utilities are included in rent and paid by owner) and make sure our numbers are close because 2 of the units are rather small and are high priced for the area (again, based on their current rental price claims). There were also some issues on the disclosure sheet (which was not completely filled out) that we had questions on as well. The selling realtor has claimed that those were mistakes and there are no issues with the dwelling. We have asked for this to be updated to protect us.

When we put the offer in we asked (outside the offer) to provide a years worth of financials as well as fixing the disclosure sheet. We did not sign the disclosure sheet. The sellers accepted the offer and signed it, but after 2 or 3 times of asking for the info and fixing the disclosure sheet, we still did not get any information or the disclosure sheet filled out properly. Our agent went back to their lawyer and wrote up a new offer. The only changes made were to include a years worth of financials and updating the disclosure document (both of which we had already asked for). The selling agent is apparently upset thinking we already had a deal (even though the original offer was never fully signed).

We know our first mistake (being new at this) was that these asks should have actually been written in the original offer, but we also made the assumption that the selling agent would know it is important to have a properly filled out disclosure document and would fix this quickly. After asking for these things 3 times now and still not receiving it, we are beginning to get the impression information is being withheld on purpose. Our agent has repeatedly said that the selling agent has been difficult to work with and has suggested that if we do not get the information we are asking for that it might be in our best interest to walk away.

We don't want to put down earnest money and pay for an inspection until this information has been provided. Are we being paranoid here?