Looking at first small complex-Any Advice

[Chris Svendsen]

I received a text from my realator in PA yesterday that he just got a listing for an 11 unit apartment complex and wanted to know if I was interested.  Heck yeah I am!  Not on market yet, have a couple weeks till hits market, but I am getting into building this weekend to do a walk through of propety and look into the units.  Currently 7 units are rented and 4 others are in need of rehab and have been used as storage by the property owner.  So far know nothing other than its a brick building, rubber roof, has had new heating system installed in last couple of years and current rents is about 3100 a month.  

I am making a checklist of items to look at in each unit, covering all items for unit from flooring type, need to replace, overall condition of unit, specific items such as doors, windows, cabinets, etc.  Will be looking at each unit of what is going to take to get to my standard when rolls unit over.  Same with the vacant units.  For the property I will be checking out mechanicals, structure, piping types, drain piping, HVAC system, overall property condition, and work needed.  I will have a contractor with me to look at structure of building and this will not be the only inspection I do but anything big you can suggest I keep and eye out for would be great.  I be doing this saturday morning.  If I get this list finished tomorrow I will post up for critique.  Also, if any tenants are in units is it acceptable to ask them if they have any concerns with property that need to be addressed?  At time current residents seem to be very forthcoming with info adn can find out a lot from someone if you give them the opportunity to speak. 

Thanks in advance for any advice you can give.  

[Diana Muresan]

@Chris Svendsen the best rates are on FreddieMac, min $1 million loan but occupancy needs to be at 85%. Having those 4 units vacant and in need of repairs might translate into less desirable terms, though you can always refi, just double closing costs