First investment property (4-unit NH area)

3 Replies

Hello everyone! I have been reading through a lot of the topics available on this app and it has been helping a ton. But I want to see personally what other experienced investors do when they are at a showing for a property they would be interested in. Such as a checklist, questions to ask the current landlord, bills showing proof when roofing and siding and other renovations were done, etc. thank you!!

-It’s a 4-Plex 2-1 bd, 2-2 bd.

-Rents are below median average

-New vinyl siding

-Roof only a few years old

-all long term tenant 5-15 years

(Also.. I'm going with my real estate agent this week to look at it, any advice before then would be much appreciated)

Hi Jarrod, welcome!  You have certainly come to the right place for answers. 

Hopefully you have picked a great agent that works with investors and multi family properties on a regular basis. If so, they should be a great wealth of information. 

Basically when I go see a property, or take clients to see a property, I first and foremost do my preliminary due diligence to make sure the numbers will work at the price I anticipate paying (either close to list price or at a reasonably reduced rate depending on listing age and expected competition).  If the numbers work, I go through the images and property disclosures to get a sense of the condition of the property and whether any sort of capital will be needed for deferred maintenance, rehabs, and or etc.  This is all prior to going to see the property. 

If all that checks out, I schedule the appointment. At the showing, I’m mostly only concerned with verifying my expectations, and making sure the layout will work for my expected rent goals.  A lot of properties are sold with under market rent, so that’s a great value add if you know what to look for. Also, with a lot of older properties in NH, you want to verify there isn’t any functional obsolescence. 

If everything is good with the showing, make the offer. Make it contingent on whatever documents you need for verification. Typically though, your building inspection is a great asset and will provide what you need as far as property condition info. I'm never overly concerned with getting info out of the current owner or tenants. They seem to never provide satisfactory answers, so I only go to them if their is a specific question that isn't answered elsewhere.

Hopefully that summary helps. Again, you should have an agent that is able to explain this to you in detail and walk you through the process. 

Good luck!

@Matthew Dennehy

Thank you very much! And my agent has done a few in the past as well as owns current rentals. I’ve been trying my own numbers on the property like mentioned in your post, currently everything works with good cash flow but it almost seems as if it’s too good to be true. That’s why I really want to get out there and take a look and see what I have to work with.

Also that’s a good point about them not giving a straight up answer they most likely are just trying to sell the property, so I’ll have to do my own due diligence. Again thank you it helped out a lot and I’ll be sure to post how everything worked out after this Thursday in case anyone is curious!

@all

Alright so we went to check it out everything on the outside was very nice only noticed some slight work to the brick chimney needed to be done. And we go into the first unit and hopes and dreams absolutely fell apart for that place. You could almost taste the cat urine in it, roof was peeling away the laminate flooring wasn’t supposed to be brown... and just in general the place was extremely out dated along with the attic needed some serious TLC

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