Mulit Family unit advice needed!

[Kayla Stalley]

Good morning!

My husband and I are thinking about investing in a 16 unit apartment building (split into 2 buildings).  The only other multi family we have now is a duplex.  This unit is 30 minutes from our home.  We will need to find private financing for the unit.  What are the major questions we should ask and things we should be looking for when doing our first larger multi family unit?  Any advice is helpful! Thank you.  

[Jaysen Medhurst]

Hi @Kayla Stalley, there's a lot to think about. Not dissimilar from a smaller property. I'd want to know:

1. All of the current owners financials for at least 2 years.
2. Financial occupancy (not physical occupancy) and how that compares to the rest of the market.
3. Foreseeable CapEx
4. Required repairs/updates
5. Value-add opportunities (e.g. sub-metering utilities, adding coin laundry, renting out garage space, upgrades like a fenced-in yard)

That's jus the tip of the iceberg. Good luck! Let us know how it goes.