Small Multifamily Costs Buyers Commonly Miss

A rent roll is only the income side. Confirm who pays heat, hot water, common electric, water and sewer, snow, landscaping, sanitation, and pest control. Review actual bills rather than estimating from a different building.

Verify legal unit count and use against the certificate of occupancy and municipal records. An occupied basement or converted space is not automatically a lawful apartment. Review leases, deposits, rent history, violations, open permits, registrations, and required inspections with an attorney.

Budget turnover, leasing, painting, appliances, roof, facade, boiler or HVAC, plumbing, electrical, insurance deductibles, and emergency response. Small buildings have fewer units across which to spread one large repair, so reserve discipline matters more, not less.