02/19/2023
๐๐ข๐ ๐๐ข๐๐ค๐๐ญ ๐๐ญ๐๐ฆ๐ฌ ๐ญ๐จ ๐ฅ๐จ๐จ๐ค ๐จ๐ฎ๐ญ ๐๐จ๐ซ when buying multifamily apartment buildings.
โ
๐๐จ๐จ๐:
โข Find out the age of the roof. Average lifespan is 15 to 30 years. If it's within the last 5-7 years of its remaining life, get your purchase price adjusted.
โข Flat roofs are quite common in multifamily buildings due to its cost factor but they could develop poor drainage over time. Check signs of any previous leaks or visible patches in ceilings or walls during your viewing.
โ
๐
๐จ๐ฎ๐ง๐๐๐ญ๐ข๐จ๐ง/๐๐ญ๐ซ๐ฎ๐๐ญ๐ฎ๐ซ๐๐ฅ:
โข Check for any visible exterior cracks, wall/floor cracks, sagging or uneven floors. Doors that stick or donโt open.
โข Gaps around windows frames & exterior doors could be another sign of foundation issue.
โ
๐๐จ๐ข๐ฅ๐๐ซ:
โข Check the age of the boiler. If it's still original, plan the replacement cost in your capital improvement budget and negotiate the purchase price accordingly.
โข Ensure boiler is serviced regularly & appropriately licensed.
โ
๐๐ข๐ง๐๐จ๐ฐ๐ฌ:
โข Check the age of the windows. Average lifespan 15 to 30 years.
โข Poor windows can cause leaks & water damage, condensation problems, and increase energy consumption.
โ
๐๐ฅ๐๐๐ญ๐ซ๐ข๐๐๐ฅ:
โข Avoid buildings with aluminum wiring (Finding an insurance provider will be a challenge)
โข Ensure appropriate amp capacity electrical panel.
โ
๐๐ฅ๐ฎ๐ฆ๐๐ข๐ง๐ :
โข Copper plumbing is quite common in older buildings, but over time they can corrode & develop pinhole leaks.
And of course, inspection of every unit, review of financial statements, lease agreements, Any 3rd party or laundry contracts, and tenant profile .
๐๐ญ๐ธ๐ข๐บ๐ด ๐จ๐ฆ๐ต ๐ข๐ฏ ๐ช๐ฏ๐ด๐ฑ๐ฆ๐ค๐ต๐ช๐ฐ๐ฏ ๐ฅ๐ฐ๐ฏ๐ฆ ๐ฃ๐บ ๐ข๐ฏ ๐ฆ๐น๐ฑ๐ฆ๐ณ๐ช๐ฆ๐ฏ๐ค๐ฆ๐ฅ ๐ฑ๐ณ๐ฐ๐ง๐ฆ๐ด๐ด๐ช๐ฐ๐ฏ๐ข๐ญ.
Did I miss anything? Please share your experience & feedback ๐ to help each other.
