The following is a list of due diligence basics you certainly need to do as an astute investor:
1. Review the Property Disclosure form signed by the Seller.
2. Copies of all leases and rental applications, to include:
- a. Most recent credit reports
- b. Any tenants have lease concessions.
- c. Any pending rental applications.
- d. Any documents pertaining to any inspections by local government agencies.
3. Tenant delinquency notices.
4. Most recent two years of operating statements (income and expenses) and current year-to-date operating statements.
5. Certified rent roll with tenant names, how much they pay for rent, security deposits, pet deposits rent payment status, lease start and end dates, unit numbers, unit type ( number of bedrooms/bathrooms )
6. Find out if any tenants have content insurance for their unit
7. A list of all capital improvements completed for the past 2 - 4 years.
8. All service contracts, warranties, or agreements.
9. Any surveys showing any improvements to the property.
10. Check for any unknown liens or liabilities on the property prior to closing with title company and seller.
11. Copies of all insurance policies.
12. Copies of any and all insurance claims within the last 5 years
13. Inventory of all property to be transferred with the property and which property is the seller's.
14. Physical inspection of the property
15. Copies of last two year's property's tax bills with proof of payment
16. Environmental audits and reports.
17. Copies of any Soils test reports.
18. Copies of any Engineering studies including reports on walls, roofs, foundation, supports and floors.
19. Any structural, mechanical, electrical, plumbing, seismographic, HVAC or other property systems replacement, maintenance and/or repairs (including invoices and estimates)
20. Copy of existing appraisal, if available.