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Updated about 10 years ago on .
Broad Evaluation Checklist for Rental properties
Hi BP members,
I am working on an initial evaluation checklist for multi-family real estate investments, for this lets assume we're talking 2 - 12 unit deals. (If anyone has anything to offer for larger properties, please include it anyway!)
Basically, my goal is to have a template that I can send to listing agents or owners to obtain information without re-typing a letter or email every time, to in essence expedite the evaluation process and weed out the deals that don't fit my criteria. This way I can evaluate deals from afar without seeing or BEFORE seeing a property.
What I am looking for here is your input from your experience and criteria. What is most important for you to know before you start heavy due diligence, like researching past building permits/neighborhood code violations etc.
So far I have the following on my checklist to request from owner/listing agents (this list assumes that if there is an NDA to sign, it's been signed by me):
- 2 years of P&L/Income statement/Rent rolls
- 2 Years + Average utility bills if they can provide them, if not I have to go to the utility company which is more work.
- Are any utilities separate or sub-metered?
- Last 5+ years of capital improvements (roof, foundation, windows, electrical, plumbing etc).
- If listed with an agent is the owner willing to carryback the financing/Land contract if the down payment is enough to pay agent?
- Lease agreements currently in place
- "Amenities" Present? Laundry, Storage, Parking/Garage/Carports, Common spaces
- Basement condition (if applicable) / do tenants have access to such?
Ok, it's just a rough start and I know it's a broad question but, anything to add?
I did not narrow down the age of the hypothetical building on purpose because I'd love your input if you are an expert in one style/age of property.
Also I would love your input on specific questions to ask regarding HVAC, Electrical and Plumbing. (I know the basics, cast iron pipes vs PVC, boilers vs baseboard heat, you get the idea...but I am looking for a succinct way to get the MOST info possible on these items).
Thanks for any help BP members!
Otto