When you decide you’re going to get into the ownership of apartment buildings lots of questions come to mind. Even though you’ve decided getting an inspector is the professional route, the questions still come up. Often times, the inspector is only human he could over look a little something. I’ve come up with my own list, important things to me, just to examin the inspectors report to see if he’s asked the following concerns.
Is the seller motivated and is he offering a fsbo financing? Sometimes you do find an owner selling in this strategy. Of course the first question comes to mind, why are you selling? He might simply be relocating. He may think he’s getting too good old to put up with ownership responsibilities. The apartment seller will probably want to flip the property and move-up to larger properties. There is this in single family homes, flipping but these types of also done with apartment buildings as well.
How old will be the property, how old is the roof and how old could be the air-conditioning equipment. Do the tenants have their own individual energy meters and their own water meter is becoming more popular. The time is it to shopping centers, malls, schools entertainment, parks, warm, libraries and an airport?
I would personally go to the flat building and give it a walk through myself. Affect on doors ask some question from the tenants. Nevertheless make sure you don’t ask, any kind of questions that would give a renter the idea you’re thinking about purchasing the property. Go on a Friday night and a Saturday too. Go over there if possible after a some day rain. Years ago developers didn’t consider landscaping the direction they do now.
After you’ve considered the property itself, then weight and dimensions what’s going on in the radius of one mile, three, five and also ten mile distance. Are there a lot of vacancies. Is there a innovative interstate freeway coming through? In your mind ask yourself, what do Now i need for my premier appartement? Tell yourself I’m never going to come up short anymore with enough answers to get yourself a complete a picture as possible about the property? Is this building I’m just about to buy a good buy?
What could you improve on the landscaping to add more value? I’m talking about painting, landscaping, parking lot, recreation area, Laundromat, mailbox area and management office too! The length of time are storage rental units in the area? The occupancy with apartments gets more of a turn over than homes. This is why storeroom facility questions are important. If there’s a large empty space on the grounds, where you could paint a white circle? May be a landing pad for a helicopter. This would up the $$$$$ quite a bit to your re-sell value of this apartment complex.
Perhaps an on site management or an off web page manager. Pull all the public records you can think of that can give you info to any questions you haven’t gotten else where. Demographics will give you a picture on the income level of people, population along with ethnic group questions.
Dr . Dolf de Roos a big real estate investor that has some great information in his books. He suggests you need to have a criteria sheet made-up on what to look for for about a hundred properties a month with your first line of inquiries about the property. Then of those pick ten properties to verify that they pass your numbers, work the numbers to check if they meet your criteria. From there, only one or two properties every thirty days will pass well enough to actually drive over there a strong look at it to decided if you want to make an offer. Using this method within the year you should come out with six to twelve apartment buildings yearly.