If you were considering buying a multifamily property as a buy and hold investor, what information would you need to see before making that decision? Reason I am asking is because I am looking at one right now and I want to ask for the correct information that an investor would want before I try and wholesale it. FYI Multifamily I am talking about has all tenant spots filled, turn key. Thank you.
It depends on what you mean by multifamily: are we talking 2 to 4 units? Or something 5 or more units. If it is 2 to 4 units, besides the purchase price and the location, I would want to know the following:
- What are the current rents?
- Is there an opportunity to upgrade the interiors in order to raise rents? If so, what are the costs (or at least what needs to be done) and what are the new rents?
- Are the current tenants on year leases or MTM? For the MTM, how long have they been tenants?
- What are the conditions of the big-ticket item? (i.e. HVAC, roof, electric, plumbing, parking lot)
If it is 5 or more units, my questions would be slightly different.
Also, I invest in Cincinnati, so I would be interested in learning more about the opportunity! Send me a DM with what you have.
Property taxes as well as when the tax rates were last revised (and when the upcoming revisions will be)
Vacancy rates for the last year
What expenses does owner pay vs tenants pay