Due Diligence Checklist

1. Property and title

• Confirm the correct legal address and parcel number, and note the mailing address for tax bills.
• Review the survey, or order one, and check easements, deed restrictions, and covenants.
• Read HOA rules, fees, and any rental restrictions.
• Review what county records show for beds, baths, units, and square footage.

2. The numbers

• Rent roll reviewed and matched to leases; financial statements or seller P&L reviewed.
• Property tax bills checked, with a post-sale reassessment estimated, and insurance quotes compared.
• Utility bills reviewed for every season, and any other income (laundry, parking, storage) confirmed.
• Rent comps and sales comps pulled, and the pro forma updated with verified numbers.

3. Physical condition

• Full inspection and contractor walkthrough completed.
• Sewer scope, plus roof, HVAC, or foundation specialists as needed.
• Capital items needed in the next 10 years listed, and recent capital improvements documented.
• Environmental concerns checked: lead paint, radon, mold, tanks.

4. Zoning and legal

• Zoning confirmed for your intended use, and current use matched against permitted use and unit count.
• Permits confirmed for past work, and open code violations or orders searched.

5. Tenants and leases (if occupied)

• Tenants current on rent, with payment history reviewed, and security deposit amounts confirmed.
• Lease end dates and renewal terms noted, and estoppel certificates signed by tenants.
• Shared area expenses confirmed.

Before your deadline

Decide in writing: proceed, renegotiate, or walk away. Missing a contingency date can cost you your earnest money.