What to ask for when buying a bigger multi family

What to ask for when buying a bigger multi family

Rockford, IL · Member since 2015 · 343 posts · 95 votes

Good evening all,

We recently purchased a duplex and rehabbing that ask we speak.

but a friend of mine contacted me and asked if I would be interested in his uncles Multifamily before goes to realtor. Could be way out of my price range but if not what should I ask him.

So far I got;

How many units?

Location?

Expenses?

Income?

any management on staff?

Any updates?

I guess I could ask if he would owner finance. If he would do that, then this is more questions I would need to know about. Like what interest rate is a norm, How much down payment would be expected.

Thanks for any feed back

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  • Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
    9y
    Chris Sukala Not a bad list of questions but, whew, just start with the address. Your friend probably knows it before even taking your list of questions to his uncle. And you can drive by and see if it's appealing to you (size, neighborhood, condition, etc.) not to mention remotely close to your price range. I also think that doing a drive-by could also yield some smarter or more nuanced questions for the uncle to really help you assess the viability of the deal.
  • Rental Property Investor · Brooklyn, NY · Member since 2014 · 722 posts · 1k+ votes
    9y

    @Chris Sukala  Contact me and I will send you a comprehensive list of due diligence items to ask for on an MFRE deal.

  • Rockford, IL · Member since 2015 · 343 posts · 95 votes
    9y

    @Andrew Johnson very true. I figure as much to do so. I have an idea where it is located but would like to get a true address since there are quite a few in the area he gave me. 

    @Jonathan Twombly I will definitely email you. been busy at work and trying to finish up our duplex. 

    I appreciate your feedbacks. 

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