Share:

Purchasing a multifamily commercial property can be an excellent investment — if you perform your due diligence. If you are considering buying this type of building, turn to Knochel Law Offices, P.C. in Bullhead City, AZ, to ensure the transaction is as seamless as possible. Their real estate lawyers have been serving residents of Arizona, California, and Nevada since 1987 and share a few critical considerations to take into account before you finalize a sale.

3 Key Factors for a Multifamily Home Purchase

1. Neighborhood Safety

Review police reports involving the property and surrounding area from the past 3–5 years. If prior tenants were engaged in drug activity, a homicide occurred on the site, or the community is prone to theft or vandalism, it might be challenging to find reliable tenants as a landlord.

2. Available Units

Lawyer Bullhead City AZIf rental units are unavailable, your lawyer can help you negotiate a better deal because you will have to cover the repairs needed to make them suitable for new tenants. Although you can include terms that require the seller to make necessary repairs, you will have less control over the work and no guarantee it will be up to your standards. You also should look at the units that are rented and obtain the leases between the seller and tenant for each. If the seller covers services like internet or cable access as a preferred provider, you will need to review those contracts as well.

3. Local Real Estate Market

Talk to a broker about rent in the area to determine if you can rent each unit for more money than tenants currently pay. You also should explore options and obligations regarding Section 8 tenants. Multifamily units sometimes are required to provide low-income housing under a prior agreement with the municipality.

If you are considering an investment in a multifamily property, turn to a lawyer from Knochel Law Offices, P.C. in Bullhead City, AZ, for excellent legal representation at every step of the transaction. Visit the firm online to explore their range of practice areas, including bankruptcy, divorce, and child support, and call (928) 444-1000 to arrange a consultation.

tracking