Questions to ask about Property of Interest

Questions to ask about Property of Interest

Miami Florida · Member since 2018 · 4 posts · 11 votes

Hello Bigger Pockets People!

My name is Moise Julien and i am I have been keeping up with BP since last year while i was injured and out of work. I would like to get to first first deal this year and i am in need of some assistance. 

I am interested in purchasing a Four-Plex multi family property. I found one, i need to find some comps to make decided whether it is a good deal or not, and i did some ESTIMATED calculations for ROI because all information were not available, but ultimately, I am unsure of my work. I would like to have this property as a Owner occupied property.

In order to make sure that my calculations are concrete, What are some questions would y'all recommend that i ask the seller of the property? I was thinking about the current Rent of the Tenants, List of all Landlord Expanses such as Property Taxes, Property Insurance ect... 

Is there anything else you fine people that can recommend that i should be asking, or is there perhaps a guideline i can use to make this process a whole lot easier? Any help or recommendation through this process would be greatly appreciated.

I thank you all for the opportunity to post and receive some guidance as i look forward to this journey!

Looking forward to hear form you all! 

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  • Charles SoperPro Member
    Rental Property Investor · Merritt Island, FL · Member since 2015 · 253 posts · 178 votes
    7y

    This thread could get pretty exhaustive depending on who you ask.  I would do your best to work from actual numbers when doing your calculations.  So that means look to your realtor or the seller to provide actual rents, utility statements, property expenses, tax bills, etc.  Be cautious here and request bank statements to prove rental income amounts and compare again estoppel agreements you get from the existing tenants.  Ask for utility bills, 12 months is good so you have an average for the whole year.  You can look up taxes with the county the property is in.  Don't forget to calculate the new taxes based on your purchase price, not what the seller is paying now.  Get a quote for insurance and any contract services like landscaping that you'll be responsible for.  The BP calculators are a great place to start so you don't leave things out.

  • Miami Florida · Member since 2018 · 4 posts · 11 votes
    7y

    Hello Charles,

    Thank you for your reply mate and apologies i didn't reply sooner, the same day I posted my question, my internet went out but it's back up now and here i am.

    The "estoppel agreements" (learned a new term today), do i obtain them from the Tenants or Landlord?

    Thank you for all your recommendations mate, this is awesome. I will definitely be adding this to my notes.

    Cheers!

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