In contract with a duplex

[Visal Nip]

Hello everyone. Back again with another possible deal in Southern California.

I'm in contract with a Duplex. Both units have tenants.

Purchase Price: $117k.

Down: 20%

I checked out the units and their in good condition, besides the minor cosmetic (paint, possible tile or laminate in the bedrooms). I will have the tenants sign a new lease agreement with me.

Still waiting to do inspection.

My problem is doing the financial due diligence. The owner only accepts cash for rent. I asked for bank statements for deposit verification and her tax return. I also asked for cash receipts she should be giving to the tenants for rent paid. Well, I came to find out she does not deposit her cash rent into her bank, so no bank statements. Haven't heard anything regarding the requested tax return or cash receipts.

Anyway other way for me to verify that the units are bringing the rents the owner stated?

Also, is it normal for the owner to pay me the security deposit she accepted from the tenants? So I can hold the deposit for when the tenants leave & for repairs. I was told it would be deducted from the purchase purchase. Is that wrong to do?

Kind Regards,

-Vi