Two to four units: residential, not commercial

The two-to-four-unit range sits inside residential financing. That is helpful for a conventional buyer, but it also means residential underwriting standards apply: the appraisal flags safety and habitability items in every unit, the property has to be insurable, and an owner-occupant buyer using FHA or VA financing faces additional condition requirements.

Split occupancy is the usual problem. If one side is rented and the other is mid-renovation or uninhabitable, the appraisal and the insurance both become difficult, and the financed contract fails. That is the situation a cash purchase is for.

What we look at in a duplex

  • Occupancy in each unit, and whether the leases are written
  • Rent against market, payment history, and deposits held
  • Whether utilities are separately metered or shared
  • Condition of the roof, foundation, and any shared systems
  • Unpermitted conversions — a single-family house divided into two units
  • Zoning and legal-use status, particularly for older conversions
  • Code cases, open permits, and municipal liens

Unpermitted conversions are common

A great many duplexes started life as single-family houses and were divided at some point, sometimes with permits and sometimes not. An unpermitted second unit affects legal use, insurance, appraisal, and what a lender will do, and legalising it is often expensive or impossible under current zoning.

We buy these. You do not need to legalise, permit, or convert anything back before closing. What we do need is a straight account of what was done and roughly when.

Selling occupied

Leases and security deposits transfer to us at closing, so tenants stay and no eviction is needed. Bring the leases, a rent ledger, and the deposit accounting — those three documents are what slow an occupied closing down when they are missing.

If a tenant has stopped paying or an eviction is already filed, that does not stop the sale. Accurate information simply lets us price the real situation rather than renegotiate later.

Frequently asked questions

Can I sell a duplex with tenants in both units?

Yes. The leases and deposits transfer at closing and the tenancies continue.

What if one unit is gutted?

That is a common reason a financed sale fails and a frequent reason owners call us. We buy with one unit unfinished.

Do you buy unpermitted duplex conversions?

Yes. It does not have to be legalised or reversed before closing.

Does it matter if utilities are not separately metered?

It affects how the property operates, so we ask. It does not prevent a sale.

Will you buy if a tenant is not paying?

Yes. Share the ledger and the status of any notice or case.