Going to see a Multi-Family

[Carlos Gamero]

Hi, these boards are great! I have a few beginner questions. Thank you very much.

1. When one goes to see a MF, if there are already tenants living in the apartments, how to check the condition of the units? Can potential buyers just go in and look around and everywhere and turn faucets and switches on and off and see if they work? Doesn't seem right, but one has to know the condition of the units somehow. If I make an appointment to go see an occupied MF, what is the best way to examine it?

2. If one is checking out an empty MF, what are the big items to look out for? The things that are about to go bad that can be a big expense in the near future? In my list I have the roof and mold in ceiling/walls.

3. If the seller provides 3 years of rent rolls and operating expenses, how can I look for signs of maintenance that has been deferred for too long? Unforeseen repairs that can eat up all the cash flow are what worries me the most. I have seen listings that advertise MF's with low operating expenses, but that may be because little preventive maintenance is being done.

4. Is it at all ok to talk to the tenants and see what kind of relationship they have with their current landlord? Also to find out what kind of people are living there.