Rapid City, SD Duplex First Deal

[Nathan Peatrowsky]

Hello!

I am currently looking at a Duplex with 2 tenants in place. The asking price is 83500 and gross monthly rent is 1700. On paper this deal looks fantastic.

I am currently a student thus no steady income to easily acquire a conventional mortgage. I have money for nearly a 10% down payment and have a feeling the property will be appraised over the asking price which I can use as leverage toward a down payment. I will first try to get seller financing. If he wants to get out of the property now this will not work and I will move onto a portfolio lender.

I am going to be taking a closer look at the property and meeting with the owner in the next couple days. I plan to ask about: rental agreements, tenant history, property taxes, squarefoot and bed/baths.

The property is currently managed by a property manager and going rates are 10% of rent. I am sure there is some work to be done on the place. 

Do I need to worry about renters security deposits?

I need advice on getting financing. 

How do I make an offer? Do we need to go to the title and escrow only when a price is agreed on?