Questions to ask seller

[Sharad M.]

Hello all-

I think I placed this in wrong section before. I think my post belongs here. I hope you guys can help me. Thanks!

I am considering buying a FSBO 4 unit apartment building. Each of the 4 units is currently tenant occupied for a total rent of $1,500. The seller is asking $55,000 for the building. It seems like a great deal on paper applying the 2% and 50% rule. I am planning to put 20% of my own money and finance the rest. I have the following questions about the deal:

1) If this is really that good of a deal, then why is the seller getting rid of it? Should I be concerned about it?

Questions for seller

1) Why is the seller selling the place?
2) Does the seller have proof for monthly rent payments by each of the 4 tenants?
3) Has the seller had any issues with any of the tenants?
4) How many properties does the seller currently own?
5) Can I speak with the tenants?

Besides the questions listed above, what other things should I be considering? What other questions would you ask the seller? What other documents would you ask for from the seller? My next deal will be my first deal, so I want to make sure I am doing as much due diligence as possible.

Thanks in advance for all your replies!

[Shanti S.]

When are you looking to sell?

Would you consider owner financing?

How did you determine your asking price?

Can you do better than that?

What your favorite thing about this property?

What's your least favorite?

Does it need any major repairs? Minor?

How much do you owe on the property?

Would you be willing to sell it for what you owe?

Do the tenants have leases?

Any lead paint / asbestos / environmental issues?

Any problems passing an inspection (like work done w/o permits)?

How long have the tenants been there and are they interested in staying?

Google the seller and property, might turn up something interesting...

I'm sure others will chime in and that you're already looking at what info is available from the town on the property...