Due diligence on multi family properties

[Katie Printz]

I’m looking to purchase my first multi family property which happens to be a fourplex. The property currently has tenants. I’m looking for advice and experiences regarding the due diligence process. What are critical questions to ask or details to research? What hidden details might not be obvious to a first timer? What do you consider to be most critical when evaluating a multi family property?

Thanks in advance for the input!

[Jill F.]

When you inspect, turn on every faucet, test every drain, test fixture shut off valves and flush every toilet; look carefully in cabinets for signs of leaks. What year is the building? Galvanized plumbing supply lines suck.

We avoid hacked up houses and only do buildings that were built as apartments. 

Take someone with you to occupy the owner so you can make conversation with the tenants. They will tell you stuff.

Also behind neighbors, the number two multi-family complaint is parking. Make sure it has decent parking.