All Forum Posts by: Miko Lee

Hi all,

I came across a 4plex that i am interested in investing. The area seems sketchy. I've been researching and analyzing for months now. I've been focusing on single unit until I came across this multi-family. What kind of due diligence do I need to do before moving forward with a potential offer? This is my first one and really want to make sure that I am on the right track..

Questions:

1. All 4 units are rented out with ridiculous low price. This is not a rent control area. Is it possible to increase rent when take over? Is it possible to evict sketchy tenant(s)?

2. What is the anticipated insurance costs for 4plex? Did some digging and some people here mentioned the average is roughly $50 per door per month? Is this accurate?

3. How do I confirm the monthly expenses such as water/trash? 

4. What other expenses should I consider when it comes to multi?

5. CapEx % and monthly maintenance %?

Again, from the pictures, the place seems sketchy. I would rather not go forward with the property if it comes with horrible tenants.. Any advice is greatly appreciated!! Thank you!