We’re looking at our 1st purchase and would be very appreciative if anyone would be willing to offer advice.
We feel we can trust the manager, & he has great rapport with tenants. However, record keeping isn’t a strong suit.
We’ve gone through bank deposits for the last 2 years and the average deposit/month is 3500 to 4000.
The expenses are paid out of this account.
That being said, the manager is saying they collect 16,000/month in gross rents.
When we asked the manager to help us understand the descrepancy, he didn’t seem to have an answer.
To me it seems he either:
is taking the lion’s share (it’s mainly cash payment)
not doing a good job of collecting
Aside from talking with the tenants, how else would you verify rents?
Any other thoughts?