I'm flying a considerable distance this weekend to tour some multifamily properties. I'm trying to come up with a checklist for data to collect at each property. Can anyone think of anyone think of any modifications to this list?
Days on market?
Has there been a price drop?
Is it 100% rented?
Are the leases MTM?
When do the leases end?
Are appliances split?
Is there a sellers disclosure?
What utilities do the tenants pay?
What utilities does the owner pay?
What is current cash flow?
Are rents at market?
How does hot water heater look/age?
How does roof look/age?
What type of heating system is it/age?
How does it look/age?
How do the Windows look/age?
What work does the property need?
@Arthur E. , please be aware: you are being set up!
Everyone who goes on "guided" RE tours are fed ONLY what the guides want you to see. And Californians in particular are seen by those Mid-Western guides as easy prey!
Where in California can you get 2% rent per month? Where in California can you get 3 bedroom homes for $50k? And many other famous "gotcha" questions!
You have now been warned. But hey, enjoy the tour. Just DON't sign! Later, you can learn here how you can to do similar deals for HALF the price that they will propose! Cheers...
If you don't have the addresses now, write them down as you go on the tour and research the neighborhoods on your own later. Also, having the address usually means you can look up the property taxes on the county website, to verify what the seller is telling you.
If you can possibly do it while you're still in the target city, drive back to the properties on your own. Drive a few blocks in all directions from the property and scope out the neighborhood. (Sellers are good at driving down the street past the renovated homes to get to their property, and not showing you the local crack house and burnt-out shells that are on the next block over.) If you can, visit the property both in the daytime and at night.
@Matt R. , great ideas! Thankfully I'm fairly familiar with the target city. I have a binder for each property I'm looking at. Each binder contains the MLS advertisement, the seller's disclosure and the checklist I'm developing. Just want to make sure that the checklist is sufficient.
@Arthur E. I am going through my initial walk through or a duplex this weekend. I have bought 3 single family homes in the past, but this is my first investment property. Is there anything else on your initial list that you looked at specific to rental properties that goes above and beyond what I normally look at during a walk through of a single family residence.
Arthur, some of the things you will want to look at:
- Whether or not the electrical systems and plumbing systems are updated
- Is there coin laundry (and if so, is it leased or owned)?
- Are there individual meters for each utility?
- What is the size of each unit
- Check the layout of the kitchen to see if it is appropriate for your target renter (and which appliances are provided/included
- Is the foundation in good shape?
- Is there adequate parking for tenants and guests?
- Are there live-in maintenance/groundskeeping/cleaning tenants that need to be accounted for
- Is the rent being charged appropriate for similar units in the area, or can it be raised to improve the value of the property?
- What methods are currently being used to pay rent (in-person pickup, mail, Paypal, etc.)?
Just some things off the top of my head, you have a good list started already.
Sorry, didn't notice this thread was so old!
@Nick Stormoen , where are you buying? Plugging each address into this website was one of the most important things I did while screening properties. http://www.thetrace.org/2015/12/gun-deaths-interactive-map-2015/
@Arthur E. I am looking north of WI Dells in the Mauston and Adams area. Not very many duplexes in Adams, but Mauston has a couple. If I can't find a duplex that I like I will purchase a single family home to rent out. I like that website, would sure come in handy for a more urban market.
Make sure you use the Rental Property Calculator on the front of the site.