One thing I'd add to the above list , and it would provide many items mentioned above ,would be a copy of the Rental Statements for what every period you can get them for. I'd ask for two years , though whether you'd get it is debatable, Before you ask the agent for them , first ask them if they manage the property . If they do then there should be no reason why they can't provide them unless the vendor tells them not to. If they don't manage the property find out who does. Ring up that property manager and ask them first about similar properties before asking about the specific property . Part of my due diligance on an area is to first ring up PM's in the area and ask them what type of properties they don't have enough of / are easy to rent. ( this is before I talk to selling agents , though I will have a good look on the net to see what type of properties are in an area )
We looked at two houses which were split into five units , and while " the rent " was 22 k per year. Vacancies / letting fees quickly dropped the rent down , let alone insurance, maintainence etc. Get an actually quote for the insurance from a Broker , and check with them if the insurance co have any out clauses of the type that was worrying Ross recently.
Remember that with blocks you may only be able to finance up to 70 % so that limits your ability to finance other deals further down the line. With this in mind from my view point , if I was thinking of buying a small block of units ( which I am ) , the main reason to do it is to generate cash flow , so knowing what the actual income is , is a critical part of the due diligance.
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