Mimimum Due diligence on 28 unit ? - Posted by Jim

Posted by Jim on September 14, 2004 at 12:50:43:

Excellent link! Thanks.

Mimimum Due diligence on 28 unit ? - Posted by Jim

Posted by Jim on September 14, 2004 at 11:32:16:

Sorry for the repetitive questions, but on this 28 unit apt complex…what due diligence MUST I complete? I have limited expense statements for last 3 years up to Nov 2003. Nothing for this year which bothers me. NOI is up and down from year to year with changes in mgt companies. Not sure if change was to help NOI or NOI suffered due to mgt changes.

Has assumable loan underneath. Need to find out if has pre payment penalty right?

Needs a roof. Need estimate.
Needs some make ready…carpet, paint etc. Need to verify how many units need that.
Has 10 vacant units out of 28. Need to verify that and the occupied ones. Some are month to month and clientele is lower income hispanic so I imagine turnover might be high due to seasonal nature of work??? Also, it is approaching winter…some hispanics leave and go back to Mexico for a few months. Is that a trend in housing too?

Re: Mimimum Due diligence on 28 unit ? - Posted by gwtx

Posted by gwtx on September 14, 2004 at 11:48:32:

Hi Jim,

You probably already know about this article, but, for those that doesn’t know what due diligence is all about:

Hope this Helps

gary