Looking at an off-market duplex - What should I ask/want to know?

Question

I'll be meeting with a fellow investor about a Duplex (possibly triplex) they are selling within the next week or two. I have met the person at their personal residence and had a brief discussion with them about it, but nothing formal (my dad was doing work for them and I was just dropping off tools for him that he needed). I have come up with some questions to ask, but I want to make sure I'm not missing anything major.

What things should I want to know about the property?

What should I keep in mind while I'm looking into the property?

What information should I be asking them for?

What questions would you be asking?

What things should I want to know about the property?

What should I keep in mind while I'm looking into the property?

What information should I be asking them for?

What questions would you be asking?

Aaron W. · Answer

@Alex Geesey That's great you found a potential deal!

Before considering this property, what is your why in investing in real estate?  What are your goals to accomplish your why? Are you investing for cash flow or appreciation?  Do you need the cash flow today?  What is your appetite for rehab?

Assuming the property meets your why and goals, you will want to ask questions that will help you thoroughly analyze the property. Every property is different, but in general, I will always ask for T12 financials, rent rolls, a list of repairs and capital expenditures in the last 2 years, and needed deferred maintenance.  This gives me an initial snapshot of the property, its current returns, and where there is potential value add. With this information, I can determine whether a property meets our why and goals. Depending on what information I get from the seller and see during the walkthrough, there are follow up questions we ask.

As a potential buyer, you need to make sure no stone is unturned, so don't hesitate to ask questions of the seller. They should be open with you. If not, then that could be a red flag on the property.

Good luck!

Alex Geesey · Answer

@AJ H. thank you for that! that is really helpful!