Documents to Ask for in Closing Process

[Michael Dallas]

Hey BP, I am going through the process of buying a 9-unit multifamily property. I was wondering what all documents do I need to make sure I get from the sellers to verify the information they are giving me. 

[Ryan Konen]

When buying a multifamily property, you'll want several key documents to ensure you fully understand the property's financials, condition, and tenant arrangements. First, request the current rent roll, which details each unit’s rental income, lease terms, and any security deposits. You’ll also want the last 12-24 months of profit and loss statements and bank statements to verify income and expenses. Utility bills and maintenance records will give insight into operational costs. Additionally, ask for copies of all tenant leases, any recent inspection reports, and records of capital improvements, such as repairs or renovations. Be sure to review property tax statements and verify any zoning or code compliance documentation. Finally, confirm if there are any existing service contracts (for landscaping, pest control, etc.) that may need to be transferred or canceled.