Deciding to purchase a new multifamily property is an exciting challenge to undertake! With every challenge comes with a variety of obstacles. Once under contract for the building, having the property inspected should be the one thing that is done as soon as possible. If there is something uncovered that was not expected, then you have the ability to still walk away. We’ve compiled a small list of things to pay attention to when in the process of purchasing a multifamily property. Of course, depending on the contract, will effect the other things you should look into.
Naturally, an inspection of each individual unit should be done. Inspections on common areas, utilities, and the general exteriors of the building. This does not need to be done by you personally, you can higher someone else or another company to do the inspection process in your stead. Once the inspection is completed by the professional you’ve chosen, they will be able to report any findings and the current condition of the building.
Real Estate Tax Bills
When overlooking the property tax data, it can tell you alot about the property. Always look over the status of current and prior year’s bills, this can give an insight into the motivation of the seller based on the date that the bills were paid. Dependant on your location, some county appraiser websites may provide calculators to help you estimate how much the bills may go up after the acquisition.
It’s important to check if there are any pending litigations. This is actually a common things, even for newer apartment buildings. Here are a few important questions to ask:
Keep a tab on the services that may have been promised via lease to the current tenants. What services have they been promised, if any? Does the current owner offer laundry appliances or internet? Are there leases on equipment or service contracts in place that are needing to be addressed, cut or renegociatied?
Looking to renovate your multifamily home? Contact Alterra Multifamily Renovations by giving us a call at 615-438-5734 or by visiting our website.