Questions to Ask Before You Invest in a Multi-Family Property
If you are considering investing in commercial real estate, you might be tempted to purchase a multi-family property. Multi-family properties can be lucrative investments when done right, but they can also be a money pit if your due diligence is not done prior to the purchase. If you are considering buying a multi-family property, it is in your best interest to have a thorough RISK assessment completed so you understand potential costs that could arise.
At Commercial Real Estate Inspectors, LLC, we provide a comprehensive RISK assessment for investors who are looking to purchase multi-family properties and other commercial real estate. Our experienced, fully licensed inspectors will provide a detailed breakdown of the costs of critical systems over the next five years. Before you buy a multi-family property in Southern California, you need a RISK assessment. Call (818) 957-4654 to schedule yours today.
What to Ask and Consider Before You Buy a Multi-Family Property
There are several things you need to consider before purchasing a multi-family property in Southern California. You will want to look at the building itself to determine whether it is in disrepair. You will want to consider the location and whether you will be able to find tenants for the building. Finally, you will need to weigh the financial implications of purchasing the property.
Multi-Family Building Considerations
One of the best ways to determine whether a multi-family property is a good investment is by having it inspected. The RISK assessment, offered by Commercial Real Estate Inspectors, can help you understand the life of the critical systems such as the HVAC and roof.
You will also want to ask questions about the:
- Condition of the building
- Square footage and number of units
- Repairs that have been completed
- Amenities offered
- Previous code violations
Completing your due diligence can help ensure that you make a sound investment decision. The more information you have about the building and its condition, the more you can rest assured that it will not become an unexpected drain on your finances in the future.
Why Location Matters
Location is another important consideration when deciding whether to purchase a multi-family unit. The demographics in the area will determine how much rental income you should expect and whether the type of property you hope to have is feasible in the neighborhood. You should ask questions about planned developments in the area, crime rates, and whether the building is fully occupied.
Financial Factors to Consider
Finally, you will want to think about the financial implications of purchasing the building. Does the property generate enough income to justify the purchase? To determine this, you need to know the current rental income. You will also have to factor in the expenses. Furthermore, you may want to ask about financing options and the cost associated with repairs or renovations that will need to be made.
Contact Our Office to Learn More
Before you purchase a multi-family property, contact our office at (818) 957-4654 to schedule an appointment. We will conduct a RISK assessment to help you determine whether the property is a solid investment. Call today to get started.