Investor · Los Angeles County, CA · Member since 2012 · 962 posts · 279 votes
Hey can someone recommend an inspector for due diligence and physical inspections for larger apartment buildings.
I'm looking at the major systems - plumbing, structural, roofs, windows, major termites etc. Who are the major players? I don't need a SFR/ home inspector.
Also, if we see structural issues, like sagging floors/ overhang sagging or potential soft-story issues, do you generally contact engineers or structural contractors. Any recommendations?
Any other tips would be great.
(On a side not I've been noticing expenses for most multies in the LA/ South Bay and Long Beach areas at around 30-40% for older, decently maintained buildings. Is that generally what others notice?)
About expenses -- I'd say most fall between 30-35% in expenses. Some have reserves, cap ex, and are more conservative getting into the 35-40% range. This is in Long Beach mainly for 5-20 unit buildings. Rents here tend to be lower than LA in general
What do you generally see in your underwriting? Where are most of your properties located?
That's probably about right for Long Beach in that unit size because the rents are lower than the rest of LA. I underwrote a 25 unit in Long Beach though which was about 20-25% expenses. I'm probably used to seeing different numbers since the property will typically be stabilized with minimized expenses when we look at the numbers to maximize the loan amount.
Anyone know a structural engineer for inspecting sagging floors on a two story commercial building? Someone who's reasonable and used to looking at buildings during an inspection period