Due diligence on a 4 unit - need help!

3 Replies

Newbie here. Just got a deal under contract and need help with due diligence. Property was self managed and does not have operating statement available. What other documents can I ask for besides leases? Is it normal to ask for 1099s for a 4 unit like this? Is there anything else I am missing?

Also, I am ordering property inspection in 2 days. Its a block construction 1985 building in FL. Is there anything specific I should order with inspection? I plan to do 4 point, wind mitigation and a plumber scope the sewer line. Any other ideas?

Any input will be much appreciated!

Thanks so much!

You need to ask for copies of the utilities, property taxes, any contracts, tenant leases, a list of any late rent payments, any plans if they did renovations, etc etc.  ask for a copy of the portion of last couple of years tax returns that relate to the property. 

You can google “due diligence list” to get examples! 

I'm curious also if requesting tax returns is normal as your lender will most likely be using the lower of the actual lease amounts or the market rents on the appraisal. I think its definitely a good document to obtain, I'm just not sure if the average seller would be willing to furnish it.

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