Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
8y
You should ask for and get: Rent roll, leases, statement of income and expenses-last 3 years min-bank statements as mentioned above, list of security deposits for closing, and do a professional inspection.
Would not hurt to verify taxes are UTD and no liens registered.
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
8y
You should ask for and get: Rent roll, leases, statement of income and expenses-last 3 years min-bank statements as mentioned above, list of security deposits for closing, and do a professional inspection.
Would not hurt to verify taxes are UTD and no liens registered.
Investor · Arlington, VA · Member since 2012 · 1k+ posts · 491 votes
8y
I haven gotten tripped up in the past for not asking for a list of security deposits. When looking at small multi-families (<5 units), at least in St. Louis, I've had trouble getting statements of income / expenses and bank statements. The types of owners generally are not run very professionally. However, you can get around this issue if you know the neighborhood you are buying in. So, in my case, I absolutely need leases, security deposit info, and a professional inspection.
Keep in mind that if they don't provide trailing bank statements, there is a chance that the current owner put non-qualified renters in at higher than normal rents on month-to-month leases to make the numbers appear better...