when contacting a seller, what information do I request from them? Thus far I know I need the propertie's rent history for 5 years, but what else do I need that can only be gotten from the seller?
Mason depending on the property 5 years of rent history may not be available.
What you request depends on the size of the property.
Are you talking for example putting 25% 100,000 down with a 500k purchase on an 8 door property OR a 100 door property at 50k a door for 5 million putting 1,250,000 down??
i am thinking of 2-4 unit properties. The ones in my area are all under 200k. Anything more than 4 seems way too daunting right now.
Hi Mason, Ask for the rental agreements, list of operating expenses, and with your offer ask to see the seller's Schedule E income tax form. Be sure to also make an offer contingent upon your satisfaction of an interior inspection of all units, pest and dry rot, roof, financing and so forth. Also, be sure to conduct a CMA and run the numbers on the desired property to know that the cap rate and/or price per unit is comparable based upon the location, condition, age, and so on.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!