I'm under contract to purchase a Triplex in the East Bay, it's a short sale and the bank has approved the sale price. The units are currently all rented out and this would be my first multi-family investment property. What are some things I should watch out for before closing to make sure I've covered everything? Besides inspections, tenant history, existing leases, would you recommend other things I should check to make sure?
Thanks a lot in advance.
Is Title good?
Who's paying utilities and which companies those are.
Well since its short sale the bank is probably selling it, " as is where is " I do not see you getting anymore of a discount on the sale price but who knows you can always try something. If you know the condition of the property I would just make sure as to whether or not you can afford to effect any repairs at this time because as the new owner you will be responsible for the welfare of the tenants.
Do a walk through the day of the inspection. Make sure you are getting credits for rents and security deposits at the time of close, should show up on the settlement statement.
@Hai Guan. You might want to have your future tenants sign an estoppel agreement.
Here is an article link from BP.
Thanks, everyone, for the helpful advice!
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