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Updated almost 6 years ago on . Most recent reply

User Stats

5
Posts
1
Votes
Praxitelis Madimenos
  • Brooklyn, NY
1
Votes |
5
Posts

Due diligence for purchasing a property

Praxitelis Madimenos
  • Brooklyn, NY
Posted

Hello,

I am still new to real estate investing and I have been learning from my mistakes.

I did come across one issue and was hoping I could get the input of the seasoned investors with regards to doing my due diligence.

So, for any potential purchase, I always make sure to ask my broker whether the tenants or the landlord pay the utilities. For this last property, I was told that the tenants pay the utilities. In fact, the ledger that seller's property management company provided didn't show any utility expenses and the tenant leases said that the utilities were the responsibility of the tenants. 

The day after we close, I get a call from my property manager saying that the water has been cut off. After reaching out to the seller's property manager we find out that the landlord pays DOES pay the utilities.

What else could I have done to protect myself and is there anything anyone could share that might be helpful?

Thank you!

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