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Updated 4 months ago,
First time interested in a larger multi-family - how do I verify financials?
I own several SFH, duplexes, triplexes, and a quad but I'm in discussion regarding a 13 unit mixed use property that is of interest to me mostly due to location (I own several properties in the area and it's near me and I have a good pulse on the town). However the financials that have thus far been provided are just a typed out PDF of gross rents and expenses. I am told that if we go under contract, I can review their books during the due diligence phase.
How do I know the books are complete and correct though? It wouldn't take much to delete some expenses from quickbooks for example or add some rental income. I know I can review the leases and that should give me gross rents but everything else seems easily manipulatable. Besides a rent roll, copies of the leases, and P&L or cash flow statement for the property, what else do I want to look at?
Additionally, how do I find a realtor that deals with larger multifamilies? My realtor isn't showing me anything that isn't on the regular residential MLS and she doesn't really add any value to these larger deals. I'm sure there are more multifamily buildings changing hands in my county besides what I am seeing.
Thanks for the help!