Possible first MFR offer

[Ned J.]

Considering exploring my first offer on a 9 plex MFR deal..... haven't contacting the owner yet....just trying to be prepared when I do.....its a Craigslist, no agent ad- older couple retiring and cashing out their real estate owned since 1972...looking for cash and will carry some of the note if needed.

The asking price is 625k.....9 plex....different rents depending on 1 bed vs 2 etc but ad states total rent $5700..of course they state there is room to increase rent....sure...

If I do a quick calculation on rough payment for 625k, that puts me around $3200/month ( P&I, insurance, tax etc), then I will need to add vacancy, CapEx, PM etc etc....haven't done that calculation yet...

But my question is..... are there documents I need to ask for in order to prove rent, leases, historical vacancy, previous Capex expenses, landscaping maintenance costs etc etc? Something that proves previous revenue and expenses?

I'm trying to make sure I get ALL the numbers I need to run a good analysis, in some verifiable form from the owner....I don't want to just take his word for it and not find out the real numbers until after I make an offer or close the deal.

So what do I ask for to prove previous incomes vs expenses?

[Beth L.]

Unfortunately, you will have to take their word with a grain of salt and do your own research. You can ask for copies of the current leases to prove the income and current vacancy, and ask for a balance sheet or receipts. You can determine on your own other costs like insurance, utilities (leases will specify which utilities the tenant is responsible for), lawn care, etc. An inspection will reveal any CapEx costs on the horizon so you can plan that into the price accordingly.

Congrats on finding a deal off market!