Buying a MFH with tenants. What should I look out for?

[Andri Artayudianto]

Hi BP, I'm just another newbie with a newbie question what should I look out for before buying a MFH with tenants in one or more units? Proof of lease? Payment history? 

Thank you

Andri

[Jim Shepard]

I would suggest that you do the following BEFORE you buy:
1. Get a copy of the lease for each tenant
2. Send an estoppel letter to each of the tenants. This will state their lease amount, who pays for water, etc.
3. Have the current landlord go thru each unit and assess the damages. LL repairs damages and requires tenant to get security deposit back up to lease amount.
4. Go thru each unit and inspect
5. Make sure all tenants are current in their rent
If the current LL is responsible for any utilities, make sure all are current.