Purchasing a 40 unit Apartment in Dallas/Fortworth

[Fahad Irfan]

Hello All, 

This is my first time posting here.  I am purchasing a 40 unit apartment in DFW and we are starting due diligence next week.  Its been a very exciting journey, and I have been researching about Multifamily investing for several years.  I am anxious about the next few weeks, and I would love some insight and recommendations form the community.  

I am interviewing Property Managers in the area but I would love to get some recommendations from local investors.  Also, I would love some recommendations for inspectors and attorneys in the area.  

Thank You 

Fahad

[Carl Millsap]

Congrats! A few things to consider as you do the due diligence:

1. Ensure you look at CAPEX items - roof, windows, HVAC etc. - how much life is left in these items?

2. Get an inspection.

3. As you walk the units ask the tenants what maintenance issues they have, ask them what they are paying in rent and ensure it matches the lease / rent roll you received. 

4. Is this a Class A, B, C or D property? When you interview PM ensure you ask what class properties they are currently managing. A class A manager more than likely won't want the headaches that come with C or D management. A class C or D manager may not have the bandwidth / team to take on a Class A or B property. 

5. Know your numbers...I can't stress this enough. If it's a value add deal know what rents you can realistically get once renovation is complete. Know your numbers inside out.

Enjoy the ride but keep your eyes open.