Questions About Purchasing First MFH

[Eric Thomson]

I have leased SFH's for the past few years and I am now looking at moving up into purchasing my first apartment and I am a little intimidated by the amount of information I need to gather before moving forward. I have found a 10-unit property I am interested in but do not know where to start and wanted to get some pointers before I approached the listing agent. I have tried searching the site and cannot find what I am looking for exactly. It will probably be seller financed or a loan assumption, so I am not worried about financing just yet. Mostly looking at what info/docs/records I need/entitle to from the seller. Can anybody either refer a forum/blog post, website, or share a list of information I need to gather (including how to go about walking/inspecting the property with near 100% occupancy)?

As far as market value, what is the best way to determine the right cap rate to use in determining sales price? Does CAD value have any bearing on the price I offer? (CAD is quite a bit lower than asking price).

I have not setup an LLC in the past, but I assume it would be recommended for a property like this? For future reference (and this may be a separate post altogether) would I want to setup a separate LLC for each MFH?