Due Diligence Checklist for MF?

[Tamar Mar]

I just had my very first offer accepted on my first apartment building in Spokane, WA - a 15-unit with rents $250/door under market.  We have a 10 day feasibility period.  What due diligence checklists do you like using?  I'm not seeing anything in the BP resources list. Thanks!

[Mario Brown]

Hey Tamar, here is the list we use. Take a closer look through BP, definitely some very sharp examples out there.  Our list  changes a little from property to property but overall......

Requested Due Diligence Documents

Exhibit B

Inventory of property tools, supplies and personal property

Exhibit C

Service contracts including trash, laundry, extermination, lawn service, etc.

HVAC and/or boiler reports

Exhibit D

Property management license (if applicable)

Certificate of occupancy

Exhibit E

Certificate of insurance

Insurance claims history for the past 2 years

Exhibit F

Commission agreements with the leasing staff

Current property management contract

Any other vendor contracts

Other Requested Due Diligence Documents

Last 2 years of financial operating statements

A year-to-date operating statement

Last 6 months of bank statements

Utility deposit register

Utility bills for the last 2 years.

Property tax bills for the last 2 years

IRS Tax returns and addendums for the last 2 years (as related

to the property only)

Articles of Incorporation

Good Standing Letter from the Department of Revenue

Any licenses in the name of Sathyam Enterprises

Rent roll for the property for the last 2 years

Security deposit register

Payroll records

Each different lease type

Written property policies such as pets and parking

Information on all rent concessions

List of any uncompleted maintenance requests

Maintenance and capital improvement history for past 3 years

Litigation history on the property for the past 5 years

Any operation manuals for the property

Title policy

Site plan

Architectural plans

Environmental Reports

Any mold inspection reports

Any lead-based paint inspection reports

Any fire system reports or citations