Obtaining information on a multifamily home

Obtaining information on a multifamily home

West Islip, NY · Member since 2015 · 4 posts · 0 votes

Hi All,

My first post here after reading countless posts over the years that have provided invaluable insight and information - it feels like an occasion! 

I have spent the last few years educating myself and saving money and I am now considering making an offer on a four-plex.  The property is fully rented currently and I have been inside - everything is pretty recently renovated.  The property disclosure says some roof repairs have been made and that there has been water in the basement. I also have a pro forma, but before making an offer and potentially sinking money into an inspection, I want to confirm that the tenants aren't currently delinquent on rent and would like further information about the age of the roof and the prior water issues in the basement.  My agent has asked the seller's agent, and he said he would get back to her but he hasn't and it has been several days. I know the property is owned by a big investor and that the property is managed by a PM.  Any tips for getting this information if the agent doesn't get back to us shortly?  Is it standard to request this basic info before having an accepted contract? Of course I want tax returns etc. but I'm willing to wait until we have a contract for that info. 

Also, the property, which is in Pennsylvania, was renovated over the last two years and taxes haven't been reassessed in about 10 years.  Anyone have any insight into whether the city is likely to reassess taxes when the property is sold and what a typical increase may look like if the property doubled in value? 

Thanks,

Valerie

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  • Investor · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    7y

    How will his answers affect your offer? If they are material/significant, ask again and let the agent know that an offer will be made as soon as you have those details.

    If they don’t really matter (if the roof maybe needs $500 repair, what does it really matter?), make the offer and add the request for additional info based on that. I assume you’ll have an inspection contingency, so you can always use that to renegotiate if needed.

    As for taxes, afaik, it’s based on the city/town and their schedule for appraisals. I don’t believe they are triggered by a sale, instead are done every 10 years (in theory, many towns are behind). But don’t quote me on that.

  • West Islip, NY · Member since 2015 · 4 posts · 0 votes
    7y

    Thank you, Mike.  I have since been able to obtain the requested info. from the seller, but to answer your question, I was mainly looking to find out how old the roof was, as that could influence my offer price if knew it would likely need replacing soon, and to make sure I wasn't walking into a non-paying tenant situation.  If the seller wasn't willing to account for these situations, I was hoping to head off any further time and expense in finding that out after an inspection. 

    Thank you for your insight on the taxes. I will make some calls to see if I can obtain further information about the process. 

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