I need some advice on a possible Apartment purchase

[George Frye]

I have run across a great investment. A 28 unit apartment with great cash flow (according to the owner) in a town that is screaming for rental properties. The owner is semi motivated to sale as he needs the money to help fund a new business venture. He is open to the idea of owner finance or lease options. However He didnt keep good records on his property and doesnt have financials or any of the monthly upkeep written down. How should I approach this and what options should I go after?

[Stephen Masek]

1) When was it built - there may be asbestos and/or lead, making maintenance and repairs more expensive than if a comparable building without those materials. You can get it checked and use the results to negotiate the price downward.

2) You need a rent roll and need to check what is actually happening. It could be full of non-paying tenants, have loads of deferred maintenance, and all kinds of expensive things