Why we spend time in diligence

[Kurt Jones]

Ran into a fun one this week. Got an outreach on a small 4 unit that was close to a 6 unit we already own. No tenants, but place had been well rehabbed by an apparent flipper.

Wrote up an offer sight unseen then went to walk it. Hmmm...one front house 3/2 with apparent garage converted into two efficiencies and one 1/1. Ok that’s 4 units. Walk through with my handyman and things seem off. All 3 units share one water heater?

Kept finding weird things that didn’t add up. Next step, call the city and ask for zoning. Look there, single family with garage. No variance requested. How about permits? Nope, nothing about the conversion.

We asked the seller’s rep And she said “yeah, they’re looking for a cash deal from somebody who doesn’t care about zoning or permits.”