We have the opportunity to purchase a five plex built in the 1940’s for 230k. They pull $2450/month in rent but the landlord pays water and heat. Taxes are $300/month. Two units have new windows, two units need new windows (7k total). The basement needs an egress installed eventually. They put 30k into creating a basement unit with a storm exit just outside the room and a door with a path to the front door, there’s a brand new water heater and brand new single forced air furnace. Four units have brand new service panel and the fifth is tied in with the whole building. The new service panels wired in after the original boxes with wire that doesn’t have ground. Roof is about 15 years old. Attic fully insulated so heat is at most 400 a month during winter. Coin operated laundry in basement, some storage, and a front deck. Anything else I should look in to or evaluate?
We’re going to pay cash for the deal and a lawyer will draw up the closing documents. Do I NEED to get an inspection?
We had our friend who is a journeyman and electrician do a walk through with us.
This is only my second deal ever. Anything else I should know/do also considering this is a 5 unit and considered commercial? Where do we ask about the added in fifth unit legality and new commercial status and implications?