New purchase Rental Income Verification

2 Replies

Hello, 

When assessing a potential new purchase, how may one request verification of rental income?  There are certain properties where the stated rental income is attractive compared to the sale price.  I understand that it may be related to a certain type of neighborhood.  However, in some cases, it may be a B- type area, where rent decent and price reasonable.  How does one request verification of income over the past 2 years? Bank account statements?  If there are other posts on this, I would be happy to be redirected to those, I just did not come across any. Thanks 

If it were managed by a property manager, they may have an income/expense sheet they can share. If it's a private owner, it may be tracked on a spreadsheet or a piece of paper or nothing at all. You could ask for copies of the old leases, if they have one.

Bottom line: ask. See what they can provide and then determine whether it's verifiable or not.

Thanks, yes good points. I suppose I may be slightly suspicious sometimes of an excel summary provided by the seller, so was curious what other practices one might utilize to verify for a greater level of comfort.  A property manager income/expense sheet would seem useful.  But yes, true always important to ask then assess.