What list do you use when inspecting an apartment complex
I suspect everyone buying an apartment complex uses some list that they check against when they inspect the individual units. Can you share yours here?
I suspect you have a different checklist for each room:
- Kitchen
- Living Room
- Common Bathroom
- Master Bedroom
- Master Bedroom Bath
- Master Bedroom Restroom
- Master Bedroom Walkin Closet
- Bedroom 2
- Bedroom 2 Bath/Restroom/walkin closet, etc.
- Bedroom N, etc.
- Balcony
- Patio
- Window/central AC/heater and temperature controls
- Boiler/water-heater
- fuse box
What are you paying special attention to, especially when the units are occupied?
Do you take pictures? Are you allowed to do so?
Most Popular Reply
I'd recommend getting your lender involved as early as possible. They'll have a completely different perspective on the property. Granted their DD list isn't the end all, if it's too risky for them or your LTV is really low, that should be a warning sign.
I'd go off of their last few years' Schedule A on their returns to get a better sense of the true financials. Of course you need to add depreciation and any commingled items back it but it's probably the truest picture of the financials that you'll be able to get.
Talk to the tenants too when you tour the property. They'll give you a real sense of what the neighbors are like.