I found a 10 unit that I want to purchase, I have used a cashflow calculator on about 10 different properties and this one has the highest ROI. I was wondering what all the steps I need to take before the purchase as well as what all I need to do after I close on the property for my business plan.
Be sure you get the rent rolls and trailing 12 months of financial statements. This info is necessary to find out what the real financial situation is on the property. Then do a tenant file audit to ensure you have real tenants in the rented units. If everything checks out then close and begin managing the property.
@Joshua Pfaff Welcome to BP.
There is a lot of great information spread across the community forums, just about anything you need to know is here. Just search.
The first thing I think you should do is educate yourself on multifamily in general. Managing and especially financing multifamily properties is nothing like residential properties.
Next steps (not complete, just very high level)
- You need to do a full underwriting of the deal
- REALLY CRITICAL! Do your homework.
- Submit an LOI
- Negotiate a contract
- Due Diligence period
- Property inspection
- Identify PM or build a plan to do it yourself
- Build CapEx & renovation plan as needed
- Secure financing
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