Seller refuses to provide estoppel letters

[Joshua Pavao]

Hello BP,

I have my first property under contract, it's a triplex that I will be securing through FHA financing.

I am currently in the inspection period, and just had a showing and home inspector at the property yesterday. 

The seller, who is also the selling agent, has been very sketchy" throughout the process. She was very upset with me approaching the current tenants and speaking with them, and when I walked away I heard her approach them and tell them to keep their mouth shut, which they didn't once she left. 

Although I'm waiting for theinspection report still, here's what I've learned:

Property has a lot of deferred maintenance.. nothing serious, but a lot of little things and need an entire landscape rehab. 

I was only supplied one lease and told the other team a time is in a month to month verbal lease ( could that be a problem?) 

On the lease it says no pets allowed, in total, there are 4 dogs between the 2 tenants and the seller knows of it. She said "I don't care because I'm selling the place, you know?"

The lease says tenant pays water, which is not true, I had a tenant inform me that she told them she is not going to pay the water anymore because they are using too much. 

I was told to get estoppel letters especially since one tenant is month to month, she's refused and has offered to provide the old lease for that tenant. Should I be worried about that? 

So my experience thus far has been unsettling. But all in all, with occupying one unit, we'd be living cheaper than we are now (approx 4-500/mo), I believe the property is located in an area that will be increasing greatly in the years to come, with some turning around of the properties, between the 3 units I believe rent could be raised $4-$700 overall which would cash flow well.

Like I said, there is deferred maintenance, and I am contemplating asking for a credit (15k range) once I see the inspection.

Sorry for the long post, just wondering if there are other things I really need to be concerned about here.. both tenants will be leaving late spring, so that gives me an opportunity to turn it around and pick my own tenants and limit the dogs as well.

Any tips, tricks, or advice is greatly appreciated! 

[Joel Owens]

Looks like seller is trying to drop a dud on you. Without estoppels notarized by the tenants I would pass unless the property being bought is at so low of a price that you could evict all the tenants and put in tons of repairs and still do well.

I doubt that is the case.

I have ran into sellers like this before. They tell the tenants to be nice and basically pay them off until closing happens and the seller vanishes like a ghost in the wind.

Just me but I would pass unless your terms are met.