Best questions to ask when buying a 4-plex?

[Kusha Karvandi]

I’m considering buying a 4-plex (this would be my first multi-family property) in the Chandler or Phoenix, Arizona area. What are the best questions to ask and most important criteria to look for when buying this type of property?

[Jeff Ronningen]

@Theo Hicks. All good points. I find it challenging to get historical income and expense information for smaller buildings. I call the utility companies myself and get historical expense information. Property tax is publicly available. Make sure you research the valuation which property taxes are based on and understand how much it could be adjusted if you purchase. This is potentially a big ticket item. For insurance you can get your own quote. Also find out costs for trash, mowing, HOA, etc. For income rely on your research and find out what tenants are paying today. Find out if they are MTM or if not when lease term ends. Determine the amount of the security deposits seller is holding.