ABCs of Buying Rental Property by Ken McElroy
Author:Ken McElroy [MCELROY, KEN]
Language: eng
Format: epub
ISBN: 9781947588134
Publisher: RDA Press, LLC
Purpose: To help you learn about the physical property, get a sense of the quality of the renters (if they occupy a unit), and help you understand the exposure to your future cash flow should you purchase the property Youâll determine the actual condition of the personal property and get a feel for the extent of major repairs.
Look for: Clues about the lifestyles of the current residents: drug activity; residents living without furniture, sleeping on the floor, and keeping articles in a plastic bag could be a future vacancy.
Residents not living in units that the seller had designated as rented. Some sellers inflate their rent rolls or have such bad records that they donât know the current rental picture.
Missing furniture, appliances, or items near the end of the useful life. Make a list of all appliances, carpet, vinyl floors and cabinets that fall into these categories.
Major water, fire, or resident damage to the premises and contents
telltale signs of pest problems in each unit and document any pest control needs.
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