Commonly overlooked in Due diligence?

[Alaaeddine A.]

Hi everyone, it’s my first time owning a rental property and I am in west Massachusetts so I am trying to be as thorough in the due diligence process as possible, if anyone can give me some tips as to things that are commonly overlooked in the process that would be much appreciated!

[Jason Regan]

The big thing to look for in my mind is the tenants rent roll.  Do they pay on time?  Do they pay in Full?  Another thing you want before closing is an estoppel agreement to ensure the tenants cant come after you for something the old landlord did. If the multi is deemed abandoned by the town ensure you know what must be done to bring it back to rentable status.  For example a multi in Fitchburg needs two parking spots per unit, so if you have a 4 family with 0 parking spots, you end up with a really big single family is all.  Fitchburg also requires sprinkler systems for 4 families and up I believe.