I Need Help Regarding Multifamily Properties
New to Real Estate · NV · Member since 2025 · 13 posts · 14 votes
I Need Help Regarding Multifamily Properties
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Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
1moThe due diligence process is similar to small multifamiles except for some of the terms used. You essentially have to verify every claim made by the seller before the sale is finalized.
Request the Trailing 12-Month (T-12) financials, current rent roll, and 6-12 months of bank statements to verify that the reported income actually matches what hit the bank.
Physical Inspection: Hire third-party engineers for a Property Condition Assessment (PCA) covering the roof, HVAC, foundation, plumbing... This includes assesssing the deferred maintenace and estimating turn costs. te turn costs.
Lease Audit: Cross-reference the rent roll with the actual signed lease agreements. Look for hidden landlord concessions, verify security deposit balances, and check for delinquent tenants
Legal & Title & City Violations Order a title report to check for liens or encumbrances, and verify local zoning codes and certificates of occupancy.
Regarding making an offer- It usually starts out with a Letter of Intent (LOI) before. moving to a formal contract.
Drop me a DM and I'll make a recommenation of someone that may be interested in co-piloting. (using your words)
15 Replies
- Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes1mo
Just for clarification- Are you looking at commercial multifamilies- 5 units and up or Residential multifamilies 4 units and under?
- New to Real Estate · NV · Member since 2025 · 13 posts · 14 votes1mo
Quote from @Crystal Smith:
Just for clarification- Are you looking at commercial multifamilies- 5 units and up or Residential multifamilies 4 units and under?
I have a 60 unit multifamily building in Oregon that I'm currently working on with the broker/realtor and a possible capital partner. I'm waiting to discuss/chat with the capital partner to see if we can make this work. The Multifamily building is currently priced at $8.2M. It is set in Coos Bay, Oregon.
- Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes1mo
The due diligence process is similar to small multifamiles except for some of the terms used. You essentially have to verify every claim made by the seller before the sale is finalized.
Request the Trailing 12-Month (T-12) financials, current rent roll, and 6-12 months of bank statements to verify that the reported income actually matches what hit the bank.
Physical Inspection: Hire third-party engineers for a Property Condition Assessment (PCA) covering the roof, HVAC, foundation, plumbing... This includes assesssing the deferred maintenace and estimating turn costs. te turn costs.
Lease Audit: Cross-reference the rent roll with the actual signed lease agreements. Look for hidden landlord concessions, verify security deposit balances, and check for delinquent tenants
Legal & Title & City Violations Order a title report to check for liens or encumbrances, and verify local zoning codes and certificates of occupancy.
Regarding making an offer- It usually starts out with a Letter of Intent (LOI) before. moving to a formal contract.
Drop me a DM and I'll make a recommenation of someone that may be interested in co-piloting. (using your words)
- 1moBradley BuxtonBusiness MemberReal Estate Agent · NV · Member since 2023 · 1k+ posts · 713 votes
Are you looking at multifamily of 4 units or under or over 4 units? The analysis will basically be the same.
The first questions you need to ask the agent is for the data, rents, expenses, leases, and a profit and loss statement. From there you can see if the numbers even work out year 1-3 and when will the property become profitable with your initial investment.
Beyond the basic calculations consider the other factor of the area. Are there high paying jobs near by? Are rents increasing in the area? What are the vacancies like? Would you leave your windows open at night? Are you going to be taking on a rehab or turn key. Can you take on the deal yourself, that gives you more control over the property and can make an exit easier. - New to Real Estate · NV · Member since 2025 · 13 posts · 14 votes1mo
I am currently dealing with a 60 unit mulitfamily unit in Oregon. I already possibly have a Capital Partner, but will be chatting with him later, hopefully. I am talking with the broker/realtor as well. The Building itself is Priced at $8.2M. Again, I'm in the very early stages of trying to get this put together. The Broker/realtor sent me the OM, so I have that. But, I am waiting right now to discuss and chat with the capital partner to see what we can do. This would be my first deal, so I'm still learning as I go. And I have specified that to the individuals needed as well. Is there anything I should know or be looking out for? Thank you guys so much! I appreciate all your help!
- Lender · Eugene, OR · Member since 2021 · 245 posts · 154 votes1mo
@Crystal Smith's list is great. The lender will also have a big role in vetting the deal on a commercial MF transaction. They will also be vetting rents, market conditions, operating expenses, etc...
Since it's your first deal, who you partner with will be very important, not just for the money, but for experience owning and operating a large asset. The lender will be looking for that experience when evaluating you as a borrower.
I don't know the Coos Bay market super-well, but $135k/door could be a good deal there. Happy to help on the lending side if I can be of any assistance. Shoot me a DM.
- 1moDenise SuppleeBusiness MemberRealtor · Willow Grove, PA · Member since 2017 · 979 posts · 642 votes
Tara, you're doing the right thing by asking questions before jumping in. Since you're new to multifamily, I'd take your time and find someone who has been through the process before and can help you understand what you're looking at. I wouldn't worry about being a GP or sponsor just yet. There's a lot to learn, and having someone experienced alongside you can make the learning curve much easier. Since you're planning to move to Oregon, I'd also start building relationships with people there now. Those local relationships can be invaluable.
Spark Rental Co-Investing Club577 Reviews- New to Real Estate · NV · Member since 2025 · 13 posts · 14 votes1mo
Quote from @Denise Supplee:
Tara, you're doing the right thing by asking questions before jumping in. Since you're new to multifamily, I'd take your time and find someone who has been through the process before and can help you understand what you're looking at. I wouldn't worry about being a GP or sponsor just yet. There's a lot to learn, and having someone experienced alongside you can make the learning curve much easier. Since you're planning to move to Oregon, I'd also start building relationships with people there now. Those local relationships can be invaluable.
Thank you! Yes, I am trying to find someone who is experienced to help me out right now. I need that more than anything. This way, I can learn the proper steps to take to getting this done. I have been looking at other properties that I am interested in and a lot less than the one I posted above. But trying to find someone to help seems a lot harder than it should be. I don't know if the Letter intent comes first, like do I figure out the numbers first by getting the rent roll and, bank statements to make sure everything lines and THEN write the letter of intent? I don't know, it seems backwards, lol. Thank you so much for your insight, I appreciate it so much! Have a Wonderful Day! ~Tara
- Specialist · Redmond, WA · Member since 2026 · 12 posts · 3 votes22h
I'd be happy to donate some time into answering the transition and DD questions. It's one thing to look at the properties and talk to the broker, it's another entirely to understand what's going on. I'm usually brought in as the "fixer" when a buyer gets in over their head missing a prior lien or major capital need or poor management. My area of expertise is the PNW and I'd be psyched to just take a look at the numbers you have. Reach out any time!
- 1moJosh C.Pro MemberProperty Manager · Indianapolis, IN · Member since 2010 · 1k+ posts · 1k+ votesI can’t tell by your post, but are you the capital partner or you need that too? With zero experience and zero money I don’t want to burst your bubble but that’s a very tall order. We have a 60 unit, but got that after 10 years of buying and selling smaller assets. The first one was a trash duplex for 26k. It was a great first stepping stone. Strongly recommend you start small where the mistakes are cheaper.
- Lender · NJ · Member since 2025 · 50 posts · 23 votes1mo
If you're just getting started with multifamily, I'd take your time on the first few properties and get comfortable analyzing them before trying to put a partnership together. Having someone experienced look over the numbers with you can be really valuable too.
Since you're looking at properties in Oregon, I'd also get very familiar with the local rents, taxes, insurance and operating costs. Those can make a big difference when you're comparing otherwise similar properties. - Accountant · San Francisco, CA · Member since 2026 · 76 posts · 39 votes1mo
Hi Tara, others have shared some great advice already, but looking at the specific numbers—a 60-unit at $8.2M in Coos Bay—here is a practical take on what to keep in mind for your first deal:
- 1. The Scale and Loan Requirements ($8.2M): At roughly $136k per door, an $8.2M acquisition requires substantial capital and strong loan guarantors. Ensure your potential capital partner has the net worth and liquidity required by commercial lenders to secure financing for a deal of this size.
- 2. OM vs. T12 Reality Check: Since you have the Offering Memorandum, make sure to cross-reference every projection with the actual trailing 12-month (T12) operating statement and rent roll. Brokers lean heavily on upside potential; you need to underwrite current operational reality.
- 3. Partner Alignment: If you are partnering up, make sure your financial model clearly defines the equity waterfall, promote structure, and cash-flow distributions so both sides are completely aligned before moving forward.
Since you are prepping to pitch a capital partner, the financial model—specifically how you structure the GP/LP equity splits—will be the very first thing they scrutinize. I build institutional-grade underwriting and waterfall models for syndicators; feel free to send me a direct message if you need help structuring the math before your partner call.
- Investor · Pacific Northwest · Member since 2026 · 538 posts · 304 votes1mo
I’d slow down before looking for a capital partner or calling yourself the GP. Right now you don’t know whether either property is actually a deal.
On Monday, don’t ask the listing agent whether it’s a good investment. Ask for the rent roll, T12, leases, delinquency, expenses, capex history and anything they have on deferred maintenance. Then underwrite it yourself.
And being the GP is a lot more than finding the property. If this is your first multifamily deal, I’d find someone experienced to help you evaluate it before deciding what role you should have in the ownership structure.
Property first. Capital partner second.
- Investor · Los Angeles, CA · Member since 2020 · 102 posts · 94 votes1mo
Tara,
Congratulations on taking the first step. I will mention two book resources that I authored and may be helpful at the early stage of your journey.
Mastering Multifamily Underwriting is built for investors new to apartments, including the lender's perspective on analyzing deals.
Since you mentioned co-GP, The Busy Professional's Guide to Passive Apartment Investing may also help: it covers the syndication process from both sides, risks and benefits, useful for a new LP or GP to understand.
Both are on Amazon. - Real Estate Investor · West Linn, OR · Member since 2017 · 134 posts · 62 votes4w
Quote from @Tara Witherbee:
Hello Everyone! I am hoping to get help here. I am brand new into doing Multifamily buildings. I have found 2, but I'm not sure exactly what the due process is here. I am trying to find someone who I can Partner/capital partner/co-pilot/Investor who is experienced in this type of area. I would like someone to go over the properties I found and let me know if they seem to be good deals. On Monday, I do plan to schedule a call to the listing agent and get more information, although I'm not entirely sure what I should be asking. I live in Nevada, but the properties I have are in Coos Bay, Oregon. Ultimately, I would love to join a "team" of multifamily groups who can show me the ropes in getting these things done. I don't know if it matters or not, but I do plan on moving to Oregon anyway. I have also thought of being a GP/sponsor in the deal with a capital partner. Is there anyone or a place that I can look into for help with this? I've been working on it for the past week. If you could recommend anything I would truly appreciate it. Thank you for your time. ( I apologize if this is some way a self - promotion? I'm only trying to get help with my situation!)
Sincerely,
Tara Witherbee
Hi Tara,
That is a big step congrats, I would be happy to talk through the deals and maybe look at some comps and such in Coos Bay. I like that area, lets connect soon!
Scott
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