Verifying Rental Income
Hi everyone! When making an offer on a MF property, is there any way to verify the rental income that the seller claims to make on the property? Is it appropriate to ask for tax returns? This is a small 8 unit property and the seller is apparently "old school" and collects rent in cash/money order and keeps hand written records. Come to think of it, he might not report all of the income on his tax return anyway. I guess the only thing I can do is check out rental comps in the area and see if they are reasonable. I just don't want to get stuck with tenants who don't pay rent on time/leases that don't exist/rent amounts that are lower than seller claims, etc. I guess these are just the risks you take when investing in tenant occupied properties, though! Anyone have any advice to offer?