14 Steps to Multifamily Acquisition - Step #5 Drive By The Property
When evaluating a potential multifamily property, it is essential to take into account the typical schedule of the residents, with a particular focus on the working-class demographic. Here is a list of key considerations:
Daytime:
Location: Assess the surrounding neighborhood during the morning hours to determine its accessibility to public transportation and to determine if residents are on their way to work.
Building condition: Carefully evaluate the exterior of the building to assess its overall condition and to identify any signs of neglect or deferred maintenance.
Parking: Analyze the parking lot to ensure there are sufficient spaces for residents and guests, and to determine if it is in good condition. Additionally, observe the occupancy rate of the parking lot, which can provide insight into the residents' work schedules.
Zoning and building codes: Research local zoning and building codes to ensure the property is in compliance and to identify any potential violations or issues.
Future development: Consider any planned developments in the area to determine their potential impact on the property's value and rent potential.
Rent comparables: Conduct research on rent prices for similar properties in the area, and visit those properties to verify that the price being paid is reasonable and in line with sub-market conditions.
Evening:
Location: Re-assess the surrounding neighborhood during the evening hours to determine its overall safety and to determine if residents are spending time outside their homes.
Building condition: Inspect the exterior of the building during the evening hours to ensure all lights are functioning properly and to identify any potential security concerns.
Parking: Analyze the parking lot during the evening hours to ensure it is well-lit and secure for residents and guests. Observe the occupancy rate of the parking lot and the types of vehicles present, which can provide insight into the median income level of the residents.
It is important to thoroughly document observations made during different parts of the day, as these observations will be valuable when conducting a more in-depth analysis of the property. This information will help you to better understand the needs and preferences of the working-class demographic in terms of accessibility and overall safety in the area.
