We are about to purchase a 4 plex here in Portland Oregon with a little bit of seller financing. We are just entering the inspection period.
Do you guys have any advice while we are in the inspection period?
I've already asked for a detailed P&L, along with all the tenant applications, leases, and all the addendums.
I'll be making sure that if the tenants are staying that any security deposits are transferred over as well.
We've got our first inspection of the interior of the property in the next couple days.
Any advice is welcome!
If you are able, obtain the income tax returns straight from the IRS to verify the P&L is accurate. The seller will have to authorize you to do that with an IRS form.
When was it built? Look at the quality and condition of all major systems: HVAC, hot water heaters, kitchen appliances, visible plumbing pipes, electrical panels, roof (type and condition), foundation, etc. If you don't have the experience to know what to look for, then bring along a trusted contractor/handyman, or pay for inspections by tradesmen in each industry (hvac, plumbing, electrical, etc). I might even pay a plumber to scope the main sewer lines so you can determine their material, ~ age, and overall condition.
I believe some extra inspection costs are worth it when making large investments like a 4-plex.
Great Tip here Ryan. I will grab the IRS 4506T and see what they say.
@Ryan Swan : I like this idea a lot. We will bring our carpenter and our plumber along and order a sewer scope. Great idea.
Any more advice out there guys?
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing