First visite on a 5plex

[Stephen Roy]

Hello guys,

This Sunday I'm going to see a 5 unit alone since my last flip 3 years back and yes I'm scared. Going out of my comfort zone and i love it! Anyways, I've ask for a few information’s in advance like what was the last 2 years Rent roll, all expenses and revenues for the last 2 years, when the roof was done.

But I'm definitely missing things I would need help to make sure I don't miss any important question or point I need to address.

Thank you.

Stephen Roy

[Roy N.]

Stephen:

Before we walk a property, we research the neighbourhood (going rent rates, vacancy rate, vandalism/crime rate, etc); and run the vendor supplied numbers (rent roll, operating costs) - adding in allowances for maintenance, management, and reserves for CAPEx, while modifying any excessively rosy numbers with estimates/extrapolations based on our experience.

We eliminate 9 out of 10 properties before even booking a walkthrough.

When you do walk the property, make note of the following:

 - condition of the envelope (walls/insulation, windows/doors, roof & external cladding);

- electrical: breaker panels; grounded circuits (bring a tester); GFCI circuits in bath & kitchen, etc.;

- plumbing: ABS vs cast iron or galvanized waste lines; galvanised vs copper or pex supply lines

- HVAC: type of heating/cooling system(s); centralized vs separate; age of systems; etc.

- finishes and flooring: cabinets, vanities, fixtures, floors, etc. {this stuff is all easily changed, updated}.