All Forum Posts by: Matt McGeough

Great job in identifying a potential property for your first multi-family deal.  I would not necessarily let the amount of doors scare you away depending on the analysis of the numbers for the property.  I would however reiterate that you have someone with some further experience help underwrite the deal or at least put a second set of eyes on your numbers.  

Second, the fire damage that has not been corrected is a red flag.  How long ago did the damage occur and how long has the current owner let these units sit vacant?  If they have sat uninhabitable for an extended amount of time there might be a reason why, as most owners would work to get through the reconstruction process as quickly as possible to limit the amount of lost income.  While I don't know how these units are laid out, I can tell you that I looked at an off market property a few years ago in which one of the buildings had been damaged by a fire.  What the owner did not initially disclose was that the city was requiring that building now be "brought up to code," which meant tearing up a parking lot and running a water line for a sprinkler system in the neighborhood of $40,000.  Due dilligence is always the key.  I wish you the best on this deal.