Inspection for a 30 units Apartment

[Brandon Yuan]

Hi all:

I just got a 30 units apt offer accepted. Now here comes the fun (hard work) part. I have a few questions regards to physical inspection during due diligence that I'd appreciate some input

• should I just walk each unit myself (and possibly bring one of contractors who worked with me before), or is it worth to hire professional inspectors to inspect all units (or a selection of units)? what's the common practice for 30 units complex?
• besides the general walk through of each unit, I'm thinking i'll need to bring on specialists to check out big items including roof, ACs, water heater (one centralized gas unit for whole complex). This needs to be done, right? any other items that need specialist?
• any other suggestion on the physical condition due diligence?

I have several fourplex properties and I manage them myself. But they are all individually purchased, and I did use residential inspectors during purchase (just like inspection for single family houses but times 4). So I'm fairly equipped with knowledge what to look for during inspection and what are risks for future maintenance/repair. But this is a new level to me and I'd like to understand what's normally needed vs. practiced vs. just nice to have if I have budget for spending extra to reduce risk

[Maxwell Manatt]

Hey Brandon,

Best practice is certainly to hire professionals. Often an experienced Property management firm that concentrates in Multifamily in your area can be invaluable in this regard. Also getting individual trades (HVAC, Roofing, Electrical etc) to do inspections on their area of expertise is recommended as well.

Old Capital Podcast based in DFW has a cool new video series on Apartment physical Due Diligence:

http://www.oldcapitalpodcast.com/videos/

Also their episodes with Bryan Amos (contractor they work with) are really great. I was lucky enough to meet him in person when he came to the Bay area and he gave an impressive presentation on Multi family due diligence. Would highly recommend reaching out to his firm. 

Congratulations on the contract!