Every owner has a book, spreadsheet, whatever to track income/expenses for good ol’ Uncle Sam. Most owners will “slant” the books to look less profitable for the government. Whenever you look at any income producing property make absolutly certain to examine the books or pass on it. Always dig as deeply as you can to discover why a property owner is selling a property that is netting them a $1000.00 a month, especially if they are willing to sell creatively. Good luck!
I’m a new investor and I have the opportunity to buy a 4 family that the owner “says” will throw off about 1000.00 a month after expenses. He’s verbally quoted the expenses and they seem to be average for the area, but I still want to be sure of them since this is my first deal. How do I go about verifying the mortgage payments, property taxes, water/sewer and insurance costs? Also should I L/O the property for a year just to “get my feet wet”, or just dive right in? Any comments would be greatly appreciated.