When buying multifamily property, check three things: whether rents are below market and can be raised, whether the seller's expense numbers are real or hiding costs, and the condition of HVAC, plumbing, electrical, and foundation systems to estimate future repairs.
So if you're thinking about buying multifamily properties, there's 3 things that you really need to think long and hard and consider when you're looking at every property. One is the income. What's it generating? Is it normal for the area? Is it below market? And can I improve it? Expenses. Most sellers lie about their expenses. So when you're looking at the net operating income, you're going to be looking at the expense report. And what you first and foremost need to know is what can you cut? What is being overinflated? Or has the seller misrepresented by saying they're not paying property manager, they're not paying a maintenance guy, they're not added in the utilities. So these are things you really, really need to dig deep into. And then the condition of all the majors— HVAC, plumbing, electrical, you know, how old is the property, the foundation. You need to understand these things, is extremely important. So if you like what you're hearing, you like the education, the content, like, share, post, comment, let me know what you think. Let's grow and build your book of business.
