mutlifamily

[Jim Chung]

hello everyone. after months of searching, I am about to put an offer on a 8 units C+ properties in cleveland area. some question brought up was...how do I know i am getting a decent deal from this purchase...where do i compare purchase from others  multifamily property?

since i am buying and managing out of state? what particular area  i should particularly be looking for?

I saw the tax return I/E report owner sent me.. the income on tax return seems to be much lower than the report sheet he given me...the broker stated sometimes there is cash rent transaction between tenant and landlord that not showed up in tax return...how can I vertified this?

thanks

jim

[Michael Totman]

Sounds shady Jim, if it were me I would not do this as my first deal. An out of state owners agent of a C+ property tells you "don't worry, lots of rent is paid in cash to avoid taxes, it's totally legit..." and you are still considering it? Run buddy.  Honestly if you still have these questions as your about to pull the trigger then you're not ready to pull the trigger.  The only way to know if it's a decent deal is to view it, run the numbers, and compare it to similar properties in the same area. Sounds like you have not done this. 

I'm not sure how you manage a property from out of state, you'll need to have someone local that can handle maintenance, emergencies, etc. 

There is absolutely no way you can verify the cash rent payments, not even when the seller presents you with verified receipts.  It's cash, and they can do wonders with Photoshop these days...

If you still want to buy an out of state property let me know, there are plenty I can sell you up here and I'll even manage them for you. 

Best of luck, make sure your research is solid, and be wary of this deal!