i have a couple duplexs now but i want to buy a 8-10 unit. what are the main things i need to look for when buying apartment buildings? what things do i neeed to ask for from the seller before i make an offer or what do i need to get from the seller after i make an offer contingent on if everything is true that he tells me. any help? if there is someone out there who specializes in buying apartments i would like to talk back and forth by email if possible.
You certainly need to do a cash flow analysis using the real world expense numbers and research the value of the property so that you buy at a significant discount. Also, be sure to get a copy of every lease (you are bound by these existing leases) and carefully screen the tenants. Many landlords will fill the building with riff-raff in order to make the building fully occupied, because fully occupied buildings command a higher price.
The bottom line is that you should be doing a thorough due diligence, just as you should have done on the duplexes.
In Buffalo, anything 3 units (attached) or more need to have upgraded electrical when it is purchased, before renting it out…The existing electrical won’t necessarily be grandfathered in if it’s not the new stuff…I think it’s called MC or something like that…In other words, you’re responsible for a huge (5 figure) electrical upgradel even if the building is in great shape…