Duplex...private seller . Also my first investment property!

[Nick Loukas]

Hey BP, so I'm looking for my first investment property in the Lehigh valley area of Pa and came across what seems to be a good deal on Craigslist. Property is not on MLS and privately being sold. Met the owner and seems like a pretty good dude. It's a 2 unit asking only 99k Upstairs apartment is 1br rented out to long term tenant for 550/monthly and downstairs is 2br with new tenant who just signed lease for 750/month. Taxes are low 2200/year and the building seems in pretty good shape. I'd only be responsible for water sewer and trash. I haven't run the numbers yet but I'm thinking it should cash flow decent. My only concern is he doesn't have an agent and all the documents he draws up himself. I'm inexperienced and would feel more comfortable having my agent deal with the closing but I know I have to pay him. Anyone have experience or advice for me?

[Kat Rathell]

3 months ago I would have shied away from a real estate deal with no realtor involved. Since then, we bought 3 properties (two of them duplexes) from private sellers and wholesalers, and did not involve an attroney or a realtor. 

An offer to purchase is somewhat easy to navigate and write up on your own. But you will have to remember about contingencies - on the results of the inspection/appraisal if you are doing those, on financing, if you are getting a mortgage, etc.

You definitely want a titling company to search the title and anything outstanding against the property, and issue you a title insurance policy and a gap insurance policy, as well as do your closing.

Also, depending on if you will buy cash or get a mortgage, the lender will/may require an inspection and an appraisal. You also may want an inspection/appraisal on your own to make sure there is nothing wrong with the property. And an appraisal that comes in below asking can also help negotiate your price down a bit.