Re: First rental property - Posted by phil fernandez
Posted by phil fernandez on January 18, 1999 at 10:42:45:
One way to check would be to take a look at the seller’s Schedule E Form that was send to the IRS. I would look at the last three years.
Also take a look at the leases of each tenant and verify this info with the tenants. Have the tenants sign what’s basically an affidavit known as an estoppel certificate certifying what the rents are.
This second way, you probably won’t be able to do before you make the offer, so in your offer have a contingecy clause stating your right to obtain the info.
Find out the company who furnishes heat and electricity. Call the companies up to verify numbers. Taxes and water and sewer costs are easily checked by calling the city that the property is located in and asking for this information.
Call up rubbish removal companies and ask them what costs would be to remove garbage on a duplex or four unit. Same with lawn care, find out what that would cost in your area.
Back to the rents, call up management companies to find out what the vacancy factors might be in your area. They can also tell you what two bedrooms verses three bedrooms rent for and where the demand is for the units.
These are just some ideas.