OfflineHello DG Members,
I had an opportunity this weekend to stop at several open houses in my area. I enjoy open houses for several reasons including seeing properties, meeting other real estate agents and gathering opinions and information. I have a mission when I go into an open house and for every question the real estate agent that is hosting the open house has for me, I try to get in three questions answered by them. I also enjoy FSBOs because they can give you a perspective on a neighborhood and their selling points.
The best advice I can offer someone is verify all the information you hear to be true when looking at a home or multi-unit property. This would include, but not be limited to, the following:
- price of the home compared to comps in the market
- age of big ticket items such as roof, furnace, central air, plumbing, electric etc.
- on multi-units verify expenses and historical numbers the current owner provides. Always request a copy of their most recent "Schedule E" from their tax return or appropriate summary page for the respective multi-unit property you have an interest in because you can then have a good summary of the actual rents and expenses paid during the year. Sometimes sellers want to provide numbers with no support to verify the numbers. Thus, the tax return should be the most accurate information you can receive.
- verify current property tax and try to find out if taxes are due for an increase
- verify water bills are paid before closing because a water bill usually follows the current owner of the property
I hope this helps. Good luck finding those deals and don't forget to trust but verify the information! Believe and Achieve! 
- Joe
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for the information Joe
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.
This is great info Joe! Do you get any flak from asking for the Schedule E? Do they seem surprised when you ask for it? What is your success rate in them having that readily available? If they won't provide it, do you walk away?
Without a vision the people parish. Prov 29:18
Your welcome. I feel the more accurate information we have avilable the better financial investment decisions we can all make. Good luck with your deals. Believe and Achieve!
- Joe
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Sometimes the sellers claim they do not want to provide their "entire" tax return. Thus, in no circumstances are we asking to see their entire return, only the "Schedule E" portion fo the return that has the property they are selling. Some investors still do not want to show you this information. I believe if your buying a multi-unit and can get close and determine the numbers it is ok. If the sellers numbers are so much better than you can verify and you can not get support to back up the numbers, then I have walked away.
I just do not want to carry a rental property if the property becomes an "alligator" and eats cash every month.
You want positive cash flow properties and the more positive cash flow from each property the better. Good luck on all your deals. Believe and Achieve! 
- Joe
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Thank you Joe for the insight! Every little bit counts. You never know what situation may arise. Great to be informed. Continue success to yu and family.........Lubertha
"GOD IS STILL IN CHARGE, HE IS THE AIR WE BREATHE"
Thank you Joe for the insight! Every little bit counts. You never know what situation may arise. Great to be informed. Continue success to you and family.........Lubertha
"GOD IS STILL IN CHARGE, HE IS THE AIR WE BREATHE"
Dealing with multi-family properties, knowing fixed & variable costs i.e. the operating expenses is so extremely important information in order determine what ROI would be & whether a Lender even conside underwriting a loan on it. If it don't have a 12% "cap rate"; the deal (horse) drops dead there.
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.
Thanks for the comments. It is so true that a little research can go a long way. A friend of mine once told me that "some of the best real estate deals he had ever done were the deals he did not do"! Thus, research and information can be priceless when making a decision. Continued success on all your deals. Believe and Achieve!
- Joe
YOU TUBE CHANNEL - Follow me on my You Tube Channel at Joe Jurek Real Estate Investing Adventures
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TWITTER - Follow me on Twitter at Joe Jurek CPA
Joe Jurek CPA
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I agree these cost and the CAP rate are all very improtant aspects of a deal. If you can control some of the costs it may be a better deal, but it is the costs you can't control that can lead to a problem deal. Thanks for the insight and additional information. Good luck on all your deals. Believe and Achieve!
- Joe
YOU TUBE CHANNEL - Follow me on my You Tube Channel at Joe Jurek Real Estate Investing Adventures
https://www.youtube.com/channel/UCiko62V79zLKX_owbirAYNA
TWITTER - Follow me on Twitter at Joe Jurek CPA
Joe Jurek CPA
https://twitter.com/JoeJurekCPA