Questions to ask seller
Hello all-
I am considering buying a FSBO 4 unit apartment building. Each of the 4 units is currently tenant occupied for a total rent of $1,500. The seller is asking $55,000 for the building. It seems like a great deal on paper applying the 2% and 50% rule. I am planning to put 20% of my own money and finance the rest. I have the following questions about the deal:
1) If this is really that good of a deal, then why is the seller getting rid of it? Should I be concerned about it?
Questions for seller
1) Why is the seller selling the place?
2) Does the seller have proof for monthly rent payments by each of the 4 tenants?
3) Has the seller had any issues with any of the tenants?
4) How many properties does the seller currently own?
5) Can I speak with the tenants?
Besides the questions listed above, what other things should I be considering? What other questions would you ask the seller? What other documents would you ask for from the seller? My next deal will be my first deal, so I want to make sure I am doing as much due diligence as possible.
Thanks in advance for all your replies!
