š What I Look for When Scouting New Multifamily Deals
Out riding around KC today looking at a few multifamily propertiesāsome listed, some off-market. Figured Iād share my thought process when doing these site visits. Even when a property doesnāt have full financials yet, Iām still asking key questions like: šIs this submarket worth betting on? š Will the area support a solid 3ā7 year business plan? š¢ And if the numbers do check out later⦠is the asset itself even worth it? When I say financials, Iām referring to: ⢠A T12 (Trailing 12-month P&L) ⢠A Rent Roll You need both to underwrite properly. But letās say youāre just driving by and canāt get inside yet ā hereās what Iām scanning for from the exterior: ⢠Roof condition (look for patches, sagging, wear) ⢠Foundation cracks or uneven settling ⢠Windows (broken seals, dry caulk, fogged glass) ⢠Siding quality (damaged, outdated, missing pieces) ⢠Gutters and drainage ⢠HVAC units (old, missing, rusted?) ⢠Landscaping (clean or neglected?) ⢠Parking lot condition (potholes, striping, etc.) Even without access to the interior, you can gather a TON from just walking the exterior with a critical eye. Last thought: "If youāre just now starting to look for a deal⦠youāre probably already 6ā9 months behind." @Chris Jackson Keep the deal funnel moving even when youāre not actively buying. Keep brokers engaged. Give feedback. Stay in the flow.