Posted by Ronald * Starr on June 27, 2001 at 14:15:25:
Troy--------
Glad to be of help.
Being efficient in the use of your time is very important in real estate investment. You want to eliminate as many possibilities as fast as you can, while at the same time keeping the possibilities in.
Good Investing********Ron Starr*************
Multifamily purchase - Posted by Troy
Posted by Troy on June 25, 2001 at 16:12:17:
I have entered into a contract to purchase a 4 unit building.
In doing my due-diligence, what else should I check for:
Am I missing anything?
Thank you.
Troy
Re: Multifamily purchase - Posted by Jim Locker
Posted by Jim Locker on June 25, 2001 at 17:18:29:
In addition to Ronald * Starr’s suggestions, make sure you get the deposits.
Check on police calls to the property.
Beyond the leases, have the owner show you each tenant’s payment history and damage history.
Look at maintenance records for the property. You want to see if it has been kept up, and you also want to see if any particular tenant is causing maintenance trouble.
Re: Multifamily purchase - Posted by Ronald * Starr
Posted by Ronald * Starr on June 25, 2001 at 16:43:52:
Troy-----
How about the neighborhood? Going up, down, not changing?
How about vacancy factor in the area? Going up, down, not changing?
What about rents in other buildings? Are they similar? If not, what is going on?
Check planning for building permits. Check code enforcement for problems. Check that there is an occupancy permit from the city or county, if needed where you are.
Talk to other investors in your area about what you should investigate.
How about looking at any leases? Any surprises such as free rent coming up in the future?
Gee, there’s probably still more. Jack Reed (website johntreed.com) has a book on how to buy apartments and inspect them when you buy. Since the book is pretty thick, there are probably about 100 different things he recommends we have not even touched on. You might consider getting his book.
Good Investing and Good InvestigatingRon Starr****
Re: Multifamily purchase - Posted by Troy
Posted by Troy on June 27, 2001 at 13:17:06:
Thanks for the suggestions. You may have saved me a lot of trouble.
I decided to call the planning commission to get information about development in the area & was told the buildings are scheduled to be demolished!!! Time frame yet determined. There seems to be a plan for the new townhouses & condos for the area. I am meeting with her tomorrow to get the details. Thanks again for the suggestions.