Fourplex purchase opportunity - no realtor involvement

[Julien Bartolo]

I have been presented with an opportunity to purchase an off-market, fairly local side by side duplex which has over the years been converted into 4 rental unit apartments.  The property is fully rented, in good condition, cashflows and I am not as concerned about the property or the deal itself as I am about the fact that part of the agreement is to avoid use of real estate agents.  I have purchased a few personal homes over the years but in most cases, with the assistance of a realtor (in one situation, I assumed or took over someone else's loan).  I do not oppose the idea of excluding a real estate agent but considering this would be my first rental unit purchase, I am curious about the types of questions I should ask and how best to legally cover myself?  I am comfortable and know the contact who facilitated this opportunity and have been provided with a number of documents to include "Residential Contract of Sale", "Regional Sales Contract" and "General Addendum" sheet (along with estimate breakdowns for said property etc).

Curious if anyone else has gone thru this process and what if any lessons learned or advice they would be willing to share.  Thank you in advance.

[Scott Mac]

A few things (of many) off the top of my head:

-- Check zoning make sure 4-plex is allowed on that lot.

-- Have a home inspection done by an inspector that does 2 to 4 unit rentals like this, including a sewer cam.

-- Pay particular attention to the electrical system.

-- Verify cash flow<---(that).

-- Use Estopple Certificates.

-- Check for liens.

-- Get copies of all leases and read them.

-- know if the city is going to make you replace degraded driveways or garages or etc... upon takeover.

-- how much service life is left on the roof--does it leak (???)

-- does the basement leak, where, what season. Is there a french drain, sump pump or just runs down the sanitary sewer.

-- review expenses for reasonableness.

Good Luck!