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Updated 20 days ago, 11/13/2024

User Stats

21
Posts
15
Votes
Michael Whitman
Pro Member
  • Connecticut
15
Votes |
21
Posts

Due diligence checklist

Michael Whitman
Pro Member
  • Connecticut
Posted

We're in the process of evaluating a multifamily near where one of my sons attend college.  On paper, the numbers work, it currently has renters in place, although month to month and one unit is actively trying to move somewhere else because they need more space. 

As I start to gather my thoughts on next steps, one that came to mind is my due diligence questions.  I'll be honest, this is the point I would normally get cold feet and pass on an opportunity. But, this community has been great in sharing advice, so we're going to dive a little deeper into this.

What are some of the due diligence questions you like to ask?  I think I have the basics down:
* rent roll or proof of rental payments over x period of time
* copies of owner paid expenses
* copies of owner repairs over the last couple of years
* clean title search
* home inspection

What are some of your favorite questions? I'm sure I'm missing some and I'm sure there are others who could close a deal and not worry about it.  For our first property, I'd like to make sure I'm thinking this through the right way.

Thanks all!

  • Michael Whitman
  • Loading replies...