Investor Checklists

[Joe Strickley]

I've been reading, researching, networking and trying to find out as much as I can about real estate investment, and have distilled much of it down to two check lists; one for locating a city or area, and the other for locating a property within that area. It seems a more efficient method for the novice than trying to wing it. If anybody can suggest (or delete) other points I'd be grateful.

This is really for 1-4 unit residential properties.

Pre-Buy Checklist
1) Demographics, ages, percentage of renters to home owners, incomes, type of jobs, type of renters
2) Job centers, taxes, services, fiscal solvency, construction, renovation, land use laws, civic pride, gentrification
3) Sales and rents trends, cap rates
4) Transportation, freeways, congestion, public
5) Vacancy rates
6) Property taxes, utilities increases, growth corridors, nearby office construction, replacement costs compare to new construction,
7) Growth in jobs, economic base, and population
8) Weather patterns, natural disasters
9) Building: architectural styles, materials, purpose built or conversions
10) Established rental management companies

Purchase Checklist
1) Inspections: property inspector, structural engineer, pest control expert
2) seller disclosure statement,
3) statement of income and expenses, sellers IRS Schedule E
4) Lot size and value
5) Verify code compliance
6) deferred maintenance
7) space, view, natural light, noise
8) Personal property & fixtures
9) All co-owners present
10) Site boundaries
11) Improvements
12) Clear title
13) Deposit conditions
14) Condition of property
15) Escrow credit for repairs,
16) pre-closing casualty losses
17) Settlement costs
18) Dates of closing and possession
19) Tenants leases and rental info and their property
20) Contingency clauses, environ, hazards
21) Insurance
22) Read all leases, check for rents levels, concessions (one month free rent etc), who pays utilities, yard care, snow removal, furniture and appliances, duration of leases, security deposits.
23) Ask tenants to confirm their terms of lease. Any oral promises for previous landlord. Who is responsible for appliances, maintenance, repairs etc
24) Clauses: guest clause, inventory, pet's rule addendum, holder over, yard care, parking, failure to deliver, abandonment of property, sublets, co-tenants