Multifamily Inspection Price

[Abraham Anderson]

I'm in talks to purchase a 60 unit property composed of fifty 2 bedroom 1 baths, six 3 beds 2 baths, and 4 single bed/bath. I've called several companies for quotes, so far the only one I've gotten back was $9,500. The property is around the Knoxville TN market.

For a 60 unit property inspection, does this price sound "normal"?

[Andrew Cushman]

@Abraham Anderson, how are you going to manage it?  A good third party management company can do it for you, and if they end up managing the property for you than there's typically no charge.  While they are there they will also do a full lease and file audit, which is another key piece of your inspections.  To supplement the management company, I will also have my contractors onsite to crawl all over (and under) the place!

On a side note, make sure you or one of your representatives goes inside EVERY unit.

Typically, if you don't end up buying the property the fee is $50/unit, give or take.  $9,500 sounds really high to me.

Also, @Brent Shryock is correct - the lender will do a PCA and charge you for it.  However this is NOT to be used as your due diligence, but only as a supplement to it.

Andrew