Other than property condition and market value comps, what questions do you have to associate parties when doing this step in investing?
I'm thinking along the lines of title and code violation questions.
Any items you have that you do would be much appreciated!
Our check list is below but note these aren't questions we ask of associated parties. We do this on our own.
Square footage- Our minimum is 1000 Square feet. We'll consider less if there's room to expand & the numbers support it.
Location- Low or no crime area & not on a major thoroughfare.
Bathroom count- We'll buy properties w/ 1 bathroom if we can get a 2nd bath in the home
Comps- We run our own comps & try to ensure we don't have bleed over from another community in the comps. We've human & have made the mistake in the past of including properties in the comparables that were within a mile radius but were actually part of another community & should not have been included in the comps
Code violations- We usually check for violations so we can include it as part of our renovation budget which drives our offer
Title- We don't spend time on title as part of our offer. If it's an off market property we'll check to see if the person presenting us the deal is the owner. Sometimes it's an intermediary, but generally we don't worry about it since 3rd parties will hold any EMD & return it if there's a title problem.
We don't hold SFRs anymore but when we did we'd naturally check market rents to see if can make our numbers.