First Multi-family purchase

[Mary McMillan]

Hello BP community!  I found an off market portfolio where I am offering to purchase a handful of properties.  We have tentatively agreed on a bundled price, and I'm looking at them tomorrow with the owner.  I've gotten a few other investors involved, we would be buying a total of 13 doors.  Four of them will hopefully be mine.  Would love to know your suggestions on questions to ask.  Rent rolls, whether or not they're occupied and if so when leases are up along with copy of lease agreements, etc.  Tell me your thoughts!

[Account Closed]

Your post tells absolutely nothing about the property value, discount value, location value, present income nor future potential.

Since you asked the question I am guessing that you are taking on much more than you can handle. If you don't have the business experience and savvy it is dangerous to rely on the investors you bring in for any type of good advice or help. Don't trust anybody when it comes to advice regarding your money. Trust only yourself and if you have to ask others for advice regarding whether or not a property is suited for you then you are not qualified to risk your money in real estate. Invest your money only when you are so positive you don't have to ask for advice. Don't trust advice from real estate agents or brokers when it comes to investing your money. Don't invest until you know how to do the math to analyze your profits 10 years out including rental income, rent increases and appreciation. If you rely on others to help with the math you are putting yourself at great risks.

Post some real numbers and information about the properties. A few years ago, properties in the Memphis area were super cheap and many landlords were selling 20+ homes in portfolios for $40k per home. While those prices sound super low compared to the average national prices you have to consider that the tenants could barely afford to pay their rent and Memphis is known as the Eviction Capital of the World. So, don't get excited until after you have crunched the numbers a few hundred times. 

Most investors spend most of their time calculating rewards when they should spend most of their time calculating risks.