Good morning BP Family, most likely I will be under contract on a MFH, what information or documents should I be asking the seller to provide? Rent roll, expenses? What else?

2017 profit and loss statement, if they have it professionally managed. Review any existing service contracts like pest control, trash service, lawn care, etc. During the inspection, talk to the tenants and get information from them about previous repairs, deferred maintenance, and ongoing problems the seller may not even know about.

Thank you.

What @Anthony Dooley mentioned is right on. Also make sure to get a list of capex repairs done as they won’t always be on the P&L statement.

Trailing 12 (or more), which includes the last 12 months of rent roll, P&L - Profit and Loss statement, if possible the tax statement. Also, info about when the past renovations, what all were replaced (giving you an idea of the big ticket items coming your way). 

Try stopping by the property and talk to a few tenants, this gives you an insight into actually living there. Try and talk to the maintenance staff, ask if they had unlimited budget what all would you do to the property? Trust me that question would reveal a lot things that you wouldn't have anticipated. 

Call the reception and talk as if you want to enquire about a possible lease, will give you an insight into how the management company deals with customers (You might not even pickup the call, or respond to your voicemail mail). Do the same in person, see how they show you around. 

These are just a few things you can start with and is no way an exhaustive list.

Depends on the size and condition. Smaller ones in not so great shape you’re likely to get nothing or maybe what the leases are at. If larger and good shape you can probably get rent roll, trailing 12, capex, fees collected and staff expenses. Lots of the value add type stuff you are lucky if you get a ziplock full of keys at closing or even half the security deposits.

@ Rudy Bello - I would not buy any real estate when unemployment is 3.5%..... period...

I would, at a very minimum, wait until unemployment is 5% to buy anything

Past 3 years Schedule E

Thank you for your knowledge everyone. 

you're probably not going to get all the docs you request. Be prepared for seller to stall, send outdated, inaccurate data and goose-chasing. 

my due diligence shortlist includes but not limited to- seller's Schedule E of 1040, copies of operating income statements for previous 2 years, rent roll, lease agreements, insurance binders, utility invoices, vendor service contracts, warranties, old inspections, survey.

@Rudy Bello

Hi Rudy

PM me and I will send over a due diligence check list

Best

Gino