13 Important Property Specific Due Diligence Steps - Know the Right Residential Property Information

Due diligence includes physical inspection of the property. Key areas to include during this step are:

Drainage should be checked including grates and issues that may cause rushing water to the edges of buildings. Also, look for areas that show signs of standing water issues.
Grounds should be checked for sink holes. Landscaping needs and fixes should be considered.
Parking should be adequate and parking should be observed for opportunities to sell spaces, etc.
Amenities should inspected including all equipment and systems. Considerations should be given to value and the potential to eliminate and reduce expenses.
Buildings including foundations, state of masonry, condition of insulation, etc. should be reviewed and documented.
Units should be inspected on a unit by unit basis and changes documented. Often low costs changes can improve lighting and make an older property much fresher.
Paint condition and removal of lead paint are major considerations. New federal regulations have made this a much more serious issue.
Environmental concerns including abandoned fuel tanks, old wells, and past asbestos use should be checked.
Common areas should be reviewed like buildings in general.
Plumbing should be viable or plans should be made to replace it. Pay special attention if there is polybutylene installed.
Electrical should be checked for adequacy of wiring. Aluminum wiring will have to be removed and each unit should have adequate wiring to support modern appliance requirements.
Appliances should be checked and modernization plans made to reduce utility costs and improve supportability.
Windows should be at least double pane. Modern windows reduce utility costs and are more maintainable.
Doors should be in good condition and offer security and good insulation characteristics.
Water heaters need to be current and in good operating condition.
Metering by unit will reduce cost and increase profitability.
Roofs can be a large expense and checking for this issue is important creating the investment plan.
Fences can make a property look much better and depending on type offer a great security amenity.
Signage is one of the best advertising opportunities a property has planning and installing the right signage is critical.
Offices make the first impression on new resident prospects. Make certain the office sends the right message or modify it to do so.
Traffic can make or break a property. If the traffic is great, often little has to be done to rent the property.
Visibility can determine the effectiveness of signage and the ability to make the property traffic pay off.
These items should be inspected for their physical viability as well as for environmental issues. Additionally, the right view of physical structures can dramatically change the financial viability of a project.