Multi Family Due Diligence Question

[Ty Doke]

When doing due diligence on multi family properties, if the current owner does not have a rent roll or formal T12 or P&L how can I verify the income of the property? Is it acceptable to ask for bank statements or a tax return? Also there are no signed leases to verify current tenants/occupancy. They are all MTM and on a "handshake lease". Is there any other documentation you would recommend I ask for? The owner seems like a very nice guy who has owned a property over 40 years and has just done it that way and it has worked for him, but would love any advice on how to continue due diligence when there is no formal T12, P&L or rent roll. Is it acceptable to ask for a bank statement verifying rent collecting and or a tax return?

Thank you for the help! Have a blessed day!

[Peter Nikic]

ask for estopel letters. one for each tenant (signed by tenant) showing amount of rent and amount of security. Also make sure there are NO other agreements unless they're listed on this letter.