You should have an attorney review the lease before you make the purchase. If the seller does not reside in the property, chances are it is being sold for the same purpose--as an investment. However, it certainly makes good economic sense to purchase a duplex for a primary residence. If the property is listed for sale, the Realtor can find out a great deal of information for you. One thing you can ask is whether or not tenants have the intent to stay or if one might be willing to vacate and terminate the lease. The seller may not want to approach tenants for fear of losing one or both without the assurance that the property will in fact be sold.
Once you enter into a contract, the die is cast. And you should always check with your lender. If the loan is for a primary residence and you cannot move in within a reasonable period of time, there may be some consequences, as rates and terms are more attractive for a primary residence loan than they are for one for an investment property.
Answer Submitted on Fri, Oct 31 2008
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