5plex Questions
Hello, I am purchasing 5 apartments. This is my first deal. These were built in 1937.
I have already received the escrow package, but have not signed the paperwork.
What questions can I ask the seller about the apartments? My co-worker was telling me to ask about asbestos, wiring. So since you guys are very good at this can you enlighten me, please.
Thanks,
Ruby
First and foremost I would want accurate financial information- monthly rents, vacancy rates, all expenses including power, water, gas, yard service, management, taxes, annual maintenance. and etc. with copies of receipts to back it up.
But if you have already resolved financial issues, I would look at wiring and insulation as your friend suggested- breaker panel, not fuses, for a start- and check the pipes to see if they are lead (replace), iron (not great), plastic, or copper (ideally). Foundation level, floor joists sound- these are serious issues. Age of roof, signs of leakage. Beyond that, it is just a matter of cost to make it look decent and get a good rent.
Chris
ANd if you do find anything make sure it gives some leverage with negotiating the price!
A building that old more than likely has asbestos