What are the steps you take for a complete due diligence on a property you are looking to invest in.
Howdy Seth:
Due diligence is just checking out everything to make sure that you still want to purchas the property. You would inspect the leases, contracts with vendors, zoning, etc. Check with the city about any code violations that may exist. Have an inspector look over the property for any damage or code violations too. Look at all expenses and get copies of all invoices for work done, utility bills, etc. Watch for rent consessions especially. The street rate may be $400 for a one bedroom but 85% are not there and are only paying $350. It could take months to get to that rent and with a lot of turnover. There are hundreds of things to look at and check out. Do not assume anything. There may be brother in law deals in some of the expenses and all the units could be friends and relatives of the owner. I hope this helps a bit and would love to get input for you from Ecic and other members as well.
Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile
Seth,
If it happens to be a larger property, check here…