Multi-Family: Do you know what you're looking at? Looking For?

[Stasiu Geleszinski]

When evaluating a multi-family property, do you know what to look for?  Do you know what the expenses should be versus what the broker or owner is showing you?  Many owners will try and fudge expenses in their favor, showing you, the potential buyer, something that is not quite on par with what reality is.  When evaluating properties be sure to make sure they include the basics like:

Real Estate Taxes

Insurance

Gas & Electric

Water & Sewage

Repairs & Maintenance

Unit Turnover

Contract Services

General & Administrative

Payroll & Benefits

Marketing & Promotion

Legal & Accounting

Landscape & Snow Removal

Trash Removal

Management Fee

Reserves for Replacements

These items at the very least should be included in any competent underwriting of a property, be it by a broker or the owner directly.  Before you make a buying decision make sure you understand the numbers, where they came from, how they were compiled, and what the time period over which they were compiled.