Ron Cadman: Multifamily Real Estate Due Diligence Tips

Imagine walking into one of your multifamily property units and discovering that rats are hard at work trying to take over your property. Or imagine discovering leaky pipes and the significant damage they have done to your property. Many seasoned real estate investors have encountered these nightmarish situations at one time or another, according to real estate investor Ron Cadman. However, you can save yourself the heartache of making such discoveries by conducting due diligence checks before you acquire a multifamily property in the first place. Here are a few tips for completing these types of inspections in the most effective manner possible.

First, try to carry out your multifamily property inspections using cutting-edge software, such has SnapInspect. This software will allow you to take pictures, document the conditions of the properties you’re inspecting, and record videos -- and all on your smartphone.

Also, make sure that you have a comprehensive inspection checklist in place for each property you inspect. For instance, you should be inspecting even small items, like door handles and light bulbs, as the costs associated with these items can quickly add up. Furthermore, be sure to thoroughly inspect your building systems, including the air conditioning, heating, electrical, and plumbing systems. In fact, you should hire professionals to examine these systems, as they can be expensive to replace.

Another important multifamily property due diligence step is to become familiar with your target property’s surroundings. If you discover that the area is not attractive, you might have a hard time marketing your property and filling any vacancies that crop up. When checking out the surrounding area, you may also want to look at your potential competitors’ rental prices. The more reconnaissance you do ahead of time when inspecting multifamily real estate, the greater your chances of suucess