I am looking to buy my first multifamily property and am narrowing down my choices. Is there a "checklist" of questions that I should be asking the brokers when i find a property i am interested in? What are the standard questions I need to have them answer?
Any help is appreciated - thank you!
Hello Chris. A few questions I want to know when looking a small MFRs:
- Current Rents vs. Market Rents; also, perform the market rents due diligence on your own; Realtors seem to overstate and don't just refer to a Zestimate; call a few units in your area and ask!
- Rent Roll History (looking for tenants paying on-time)
- Who pays for utilities (owner or tenant)? If Owner, grab a copy of the last 12 months of bills.
- Who pays for lawncare?
- Sewer or Septic? If Septic, how old is the tank and can they provide proof of last being pumped? Most County Health Depts have the install records online.
- What does the current pay for insurance?
- What are the current taxes? Will this go up based on the purchase price?
I have a spreadsheet on my website you might be interested in acquiring. Go there and respond to the pop-up. Good luck!