Multi-Family Purchase checklist

[Jay S.]

Hi,

I just went under contract on a 22 unit apartment building in CA. While I own numerous duplexes and SFRs, this will be my first true apartment building. In addition to inspecting roofs, HVAC, electrical, can you think of any other things I should pay special attention to? I'll also of course walk through every single unit.

My first order of business even before inspections is to get the accounting records. Most importantly I'll need to look at the "unrolled" P & L for 2012 up to 2014 year-to-date. What should I look for as discrepancies / red flags as I pour over the financial records?

thanks,

J

[Jeff Greenberg]

Foundation issues, plumbing, water and sewer, parking lot. When were the units last upgraded, how many we're upgraded. Last paint job. Pest/ Termites/roaches/ bed bugs.

You should have a professional do a building inspection report.

On the financials, do the rent rolls match the P&L. Make you get a monthly breakout, not a summary. To easy to hide numbers in a summary. Get bank statements. Check for the 50% rule. Are his expenses to low. Did he have employees, will you.