Small Multi-Family / Fourplex Due Diligence? What should I ask the agent for?

Question

Hey BP!

I'm looking at fourplexes to invest in but other than price what should I be looking for?

What are some things I should ask agents for?

Some of the listings I've seen have basic financial information like gross annual rent and taxes or an annual expenses figure with no breakdown.

Am I entitled to ask for rent rolls, tax returns, utility bills, etc?

Is any info not disclosed until after an offer is made?

Please point me in the right direction

Thanks

Sean Ploskina · Answer

Generally Pre-Offer I want information regarding current rents, extra income(washer/dryer), vacancies, condition of the units, recent updates, and expenses(including utilities). If they are hesitant to provide information I am hesitant to make an offer.

As part of the offer I will require verification of all the information previously provided with rent rolls, copies of all leases, and tax returns for the past 2-3 years. The tax returns are great to verify their expenses. No one underestimates expenses to the IRS. All of this is usually provided after the offer is accepted. Again if they stall or fight on these requirements I walk away.

Small Multi-Family / Fourplex Due Diligence? What should I ask the agent for?

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