Putting my first offer in on a 3-unit!

[Conrad Legé]

Hi BP,

I am currently having my agent write what will be my first offer on a property. This would be a 3-unit which I intend to house hack. The numbers are pretty solid. Looking at $300+ cash flow after budgeting for both maintenance and cap ex. All units are occupied which the leases are expected to end within the next two months. Not really any work that needs to be done from what my untrained eyes can see. Haven't spent much time in the neighborhood, but there is low crime compared to the rest of Chicago and public transportation nearby. Is there anything else that I am missing or should be doing my due diligence on? Or red flags I should I look out for should I make it to the inspection period? Any insight is much appreciated!

Conrad

[Mike B.]

Congrats, Conrad! Run the property through the building violation website and ask for proof that the rent has been paid by each tenant for the past 4 months or so. My fear when picking up a multi is that I'm inheriting bad tenants that I'll have to pay to evict...while paying for the building in it's entirety without any cash coming in.