Multi family analyze checklist

[AJ Nettles]

Im new to investing and I want to be a house hacker in Baton Rouge, LA starting off so I can live free and learn how to be landlord on a small scale first. When finding a potential small multi family deal 2-4 units, What are a checklist of things I need to request from the listing agent/seller to completely analyze the deal??

[Corey Woodruff]

If you are going to get into multi family properties you must must must read the Abc's of real estate by Ken McElroy. This will give you so many tips. Don't base your offer from the sellers listing price. Your offer is based on the operations and cash flow of the property. The listing price is 100% irrelevant. You need to know all expenses and all income from rent roll and books, So that you can make an educated and accurate offer that works for your business.  There are three types of income involving a multi family property that you need to know about the property before purchasing

Actual income-income generated over last 12 months

Actual potential income- income in last 12 months if all units are rented

Future potential income- total income the property could get if managed properly, fixed up, and all rented

****SO DON'T LISTEN TO WHAT THE SELLER SAYS THE INCOME IS IN THIS PROPERTY! DO YOUR OWN RESEARCH AND BASE YOUR OFFER FROM THE ACTUAL INCOME THAT PROPERTY IS GENERATING AT THE TIME OF PURCHASE! 

####READ ABC'S OF REAL ESTATE#####

Hope this helps