Are you planning on closing on a multi-family property in the coming weeks? If so, you’ve come to the right place! This article will provide several tips on what to for when doing a final walk-through on a multi-family investment property.
Learn More About The Multifamily Walkthrough
If a multi-family investment property needed repairs, the final walk-through gives you the buyer, the ability to walk through each unit of the property and confirm that the seller did make those repairs and has filled the terms of the deal.
During the final walk-through, you mustn’t rush it, take all the time that you need inspect each unit of the multifamily property because you want to do your due diligence and have confidence that you know exactly what you’re purchasing because any repairs or problems that you miss will have to be paid for by you, and not by the seller.
What to bring on your final walk through
When it comes time to do your final walk-through of a multi-family investment property, some of the things that you should bring with you include the inspection report, purchase agreement, paper, and pen to take notes, your phone, phone charger (used for testing electrical outlets) and possibly a list of questions that you may have for the seller or the seller’s agent.
What should you be looking for during your final multifamily property walk through?
Depending upon the size of the multi-family property that you’re purchasing, there may be multiple units for you to inspect and walk through so the good news is that the following items will give you a checklist of things that you should look for or inspect.
Inspect The Doors – One of the first things that you should inspect when you do a final walk-through of a multi-family property is the doors. Specifically, you should be verifying if any doors in the property are either creaky or sticky.
Problems with doors can point to other issues that the property potentially has so you want to keep this in mind and take the time to inspect each door as you’re walking through the units of the multifamily property.
Review The HVAC Units – Since it’s not uncommon for most HVAC units at a multi-family property to be 10 years old, or older, you want to take the time to thoroughly investigate the HVAC for each unit.
The multifamily property has to confirm that it’s in proper working order. Specifically, you should verify that the air conditioner blows cold air and blows hot air because there’s nothing worse than finding out that the HVAC doesn’t work after you purchase the property and have your tenants move in.
Look For Broke or non-working electrical outlets – Although It might seem minor to some investors, you should also check each outlet in the units to the multifamily walkthrough property to confirm that they are not broken and functioning correctly. This is why I instructed you to bring your phone charger with you earlier in the article because, when you have that charger with you, you can easily plug your phone into each outlet to confirm that they’re working.
Leaking faucets, or bad plumbing – There’s no doubt that inspection HVAC is important because that can be one of the biggest expenses that you have to make as the owner of a multi-family property but plumbing is also equally as important. If you see water pooling underneath the sink for example, or pipes dripping, it’s important to write these things down so that you can report them to the seller so that they will fix the leaking pipes before you close the deal.
Mold – Another thing that you should be on the lookout for when walking through a multi-family property before purchasing it is mold. Specifically, take the time to investigate the basement in the property because mold often grows easily in the basement of a multifamily property but it can also be found growing around sinks and bathrooms as well.
Appliances that are broken or malfunctioning – Every unit in the multifamily walkthrough property should have appliances like a dishwasher or a refrigerator. In some cases, the units may have washers and dryers as well, or the building may have a separate laundry room.
You shouldn’t hesitate to test every appliance in each unit of the multifamily walkthrough property because you want to confirm that the appliances are all functioning since repairing or replacing a refrigerator, stove or dishwasher can add up so it’s important to verify that those appliances are working before you close on the property.
Look for signs of pests – Besides mold, pests can also be very difficult to deal with, especially if they are ticks, termites or fleas because they can breed very quickly and be very problematic. During the time that you’re inspecting the multifamily property, be on the lookout for the carcasses of dead bugs, especially bed bugs!
You should also be on the lookout for droppings, pesticides, sagging floors or even the holes in the baseboards or walls because these are all indicators that one or more of the units in the multifamily property may have a problem with pests.
As we mentioned in this article, due diligence is the key to success with purchasing a profitable multi-family walkthrough investment property. Thankfully, with the tips in this article, we’ve offered you multiply items that you should check when doing your final walk-through so that you can have complete confidence that the seller made any repairs that you previously asked them to make and you’re getting what you’re paying for.
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