Tenant in REO

[Ed L.]

I just submitted a offer on a nice duplex that is in a great location near my office. The site may also have commercial value in the next 10-15 years.

The duplex consist of 2br. 2ba units that are about 1100 sq/ft. each. Built in 1993.

The units should bring 700 monthly each.

It is REO and just came on the market today for 57,000. Cash flow should be pretty decent. Building is in great shape and doesn't need anything in the immediate future based on my walk through.

My biggest concern is there is already a tenant in one of the units. Under normal conditions that would be fine, but with REO it's kinda odd.

The tenant seems to be keeping things very tidy on the outside, but I wasn't able to inspect the inside on the first visit.

The listing agent just doesn't have any info on the tenant other than they are currently paying 650 per month. Not sure to whom?? If they are current??? Who has the deposit?? Is there a current Lease??

Do I need to request a copy of the lease from the bank????

Do I have to honor a lease by the previous owner who defaulted?

Am I liable for the security deposit that the tenant gave to the previous owner??

I'm kinda nervous after reading the professional tenant horror stories...