10 Unit Apartment - Estimate numbers prior to offer or get full financials?

6 Replies

Hi everyone,

I am new to multis that are over 4 units, and it's been quite a lot to learn. I know that I need to get financials as the value is based on NOI, but when do I get the exact financials-during due diligence, or before making an offer? I can estimate a lot of the expenses, and I know what the seller is stating for current rents. Do I verify all of that prior to the offer, or do I make an offer based on the estimate and adjust after during due diligence?

I feel like I've read both ways.  I just want to make sure that I'm not frustrating the agents involved, but I want to make sure that I've done everything properly from my end to evaluate the deal.

Thanks in advance!


Don't worry about bothering the real estate agents, that's their job. Any realtor should be gathering up this information up for you before you make an offer. Request copies of all leases to verify rental rates. You can contact the utility department's to get the actual cost of water, electric etc.

You should be able to ask for financials before you make an offer. If the seller does not want to do that, it is a red flag. Of course, the financials provided before contract are those you need to analyze the deal, which need to be verified in detail after you have a contract. Since it is understandable the sellers wont provide bank account, tax return, leases, before you have a contract. 

You should not be able to get a copy of the leases prior to an accepted offer.  That is confidential information that should not just be passed out. 

All of the information should be given to you by the agent.  They should be able to pass along the income and expenses.  Ask for the actuals.  They will probably give you a proforma which is just a view of income and expenses through rose colored glasses.  They should be able to provide you with a current rent roll.

Once you get into contract you can verify everything for accuracy.  Don't forget to include management. 

Thanks for the info everyone!  My agent was good to try to get the necessary info.  It just seems like we always run into difficulty getting info on multi's, even the smaller ones.  For this one, it was listed at 59k gross ann income, and only 11.5k expenses.  The property has 3k in taxes, on-site laundry, and owner paying water & gas, so I'm sure that that number is way low.  I just wanted to make sure that I wasn't going out of order trying to get more details on expenses before putting in the offer, and I appreciate you all clarifying that for me.


When I sold, my agent asked for and received, actual income and expenses from me and put it in the offering. By doing this, potential buyers were made aware. He did include a proforma with market rents as well.  When I got an offer, all that was required was for my agent to verify all information with contracts,  actual financials,  etc. 

I would definitely not give resident leases to any potential buyer unless in contract. Afterwards, they are welcome to do their due dilly to their hearts' content. 


Don't worry about frustrating the agents; they need to do their job.  Everybody, the sellers, lenders, agents, investors; everybody has a part to play in everybody needs to do what they're supposed to do to make the deals work.  

Essentially, you need the information to get a mortgage to prove debt coverage.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here