[Apartment Complexes] Tips for First Accepted Offer

[Andrew Luong]

Hey Team -

A little bit of background here is that I currently have 4 rentals in Sacramento and 2 in Houston as well as completing flips but have now decided to venture into apartment complexes.

Just had an offer accepted and am now trying to piece the process together as it's a bit different from what's needed from the SFR side.

Some details about the purchase thus far:

• Purchase Price - $771,000
• Gross Current Rents - $8,400
• Potential Income - $10,200

Here's what I'm asking for:

• Rent roll
• Leases for all units
• Profit and loss statement
• Operating income + expenses
• Utility bills

My thoughts process-wise:

1. Receive/confirm the income + expenses
2. Confirm condition via a property inspection
3. If all checks out - complete the purchase

Aside from some moral support from the BP team, my ask is if - at a high-level - I'm missing any other points?  Also, any tips for an apartment newbie?

Thanks & cheers,

Andrew

[Tim Ryan]

Cool.
Lenders will typically ask for T12 P&L's
Which means Trailing 12 months - so they can see the health of the property to determine if
A. Will the lend on this
And
B. If yes, what rate and terms you'll get

My advice is ask for all due diligence documents early and state in contract that the time clock starts once all documents are given to you. If not, they will drag it along and you and your lender will be very frustrated.