Property Tours: Assessing Condition and Building Relationships

[Jorge Abreu]

Touring properties is super important when you're thinking about investing in real estate. Once I've done some homework on the property and everything checks out, I make sure to visit it in person. There are some really good reasons for this.

First off, it lets me see for myself what the property is like. Walking around and checking out the units and the outside helps me understand what it could be like if I decide to invest.

Also, when I go to see the property, it shows the seller that I'm really serious about buying it. It's like saying, "Hey, I'm really interested in this, let's make a deal." Plus, it helps me build a good relationship with the seller, which can be handy when it comes time to talk about the price.

How I approach the property tour depends on a few things, like how the property is being sold and where it's located. If I'm one of the first people looking at it or if I have a direct line to the seller, I might try to get an idea of the price range before I go. But if the property is being advertised to everyone, I definitely want to see it in person to make sure I know what I'm getting into.

During the tour, I like to check out all kinds of units, from ones that look brand new to ones that might need some work. This helps me figure out how much money I might need to put into the property to make it better. I also ask lots of questions about things like repairs that have been done before and who lives there now. Gathering all this info helps me figure out if the property will make money or not.

I don't just look at the inside of the property, though. I also pay attention to things like the outside, the sidewalks, and who's living there. These details can tell me a lot about what it's really like to own the property and how much work it might need.

One big tip: while you're touring, chat with the people who work there. They know all about how things run day to day and any issues that might come up. Plus, it's good to be friendly with them since they're the ones who keep the property running smoothly.

Here are some questions to ask during your property tour:

➡️ How many units have been renovated?

➡️ What is the degree of the upgrade for the renovated units?

➡️ Are all the non-renovated units in the same condition, or do some require more work than others?

➡️ Can you provide a list of different finish outs for the units (e.g., classic, semi-upgraded, fully upgraded)?

➡️ What are the estimated costs of upgrades for the semi-upgraded and fully upgraded units?

➡️ What is the degree of current condition for units that need major renovations?

➡️ Are there any other areas on the property that require renovations (e.g., leasing office, maintenance shop, storage)?

➡️ Can you provide a list of completed capital expenditure (Capex) items and their costs?

➡️ What is the budget for pending Capex items that are yet to be completed?

➡️ Do you have any estimates from contractors for the pending renovations or Capex projects?

➡️ How many air conditioning (AC) units have been replaced in the last two years?

➡️ Have there been any replacements or major work done on chillers in the last two years?

➡️ How many water heaters have been replaced in the last two years?

 ➡️Have there been any replacements or major work done on boilers in the last two years?

➡️ Has any work been completed on the roofs in the past ten years?

➡️ Are there any active roof leaks?

➡️ What type of existing flat roof material is in place?

➡️ Has any work been completed on the foundation?

➡️ Has any major plumbing work been completed?

➡️ Are the sewer lines made of cast iron or PVC?

➡️ Are there any known slab leaks or other major plumbing issues?

➡️ Has any major electrical work been completed?

➡️ Is the wiring aluminum or copper?

➡️ If aluminum, has anything been done to remediate it?

➡️ Are there any Federal Pacific electrical panels onsite?

➡️ Are there any major pest issues?

➡️ Have there been any reported bed bug incidents?

➡️ Are there any active termite infestations?

➡️ In your opinion, what cosmetic improvements, deferred maintenance, or added amenities does the property need?