First Multifamily Lakewood

[Rahul Bhatt]

We are under contract for our first small apartment complex in Lakewood suburbs of Cleveland north of Detroit ave. cap is around 7%

Asking is upper 400k 

Neighborhood b- blue collar 

Rents are around 7k 

Wanted to get an opinion from experts is it a good deal means are we paying market Price? What should be due diligence except below

1. Inspection

2. Checking of proof for the financial p&L verification of proof like utilities etc 

3. City violation

Any more things we need to verify? Any suggestions and guidance will be greatly appreciated.We have done sfh& less than 4 unit  many times but this is the first time considering apartment building 

Thanks for your help in advance

[Grant Lin]

Match leases to rent roll. If they don't match, be sure to get estoppels

Ask for and check all contracts: 3rd party laundry contracts, trash, management, etc

List of capital improvements in the last few years

List of personal property to be conveyed to buyer (e.g. tools, spare appliances, repair parts, excess flooring, etc)

List of vendors and contact info

Any and all documents or notices that reference the existence of mold, lead-based paint, or other toxic materials and related problems

Any and all documents or notices that reference the existence of any litigation affecting the property

Any notices from any government agencies