CalculateRealEstateROI

Multifamily · Guide

Multifamily Due Diligence

Physical, financial, legal — three-track diligence before close.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Key takeaways

  • Physical: unit walkthrough + inspections.
  • Financial: T-12 + lease audit + tax.
  • Legal: title + survey + zoning + environmental.
  • 30–60 day window typical.
  • Walk if anything material discovered.

Core concepts

Physical DD

Property condition, roof, HVAC, plumbing.

Financial DD

T-12 + bank + lease audit + utility.

Legal DD

Title, ALTA survey, zoning, Phase I.

Step-by-step framework

  1. 1Engage inspector.
  2. 2Order title + survey.
  3. 3Lease audit.
  4. 4Phase I.
  5. 5Review and decide.

Common mistakes to avoid

  • Skipping Phase I.
  • Light lease audit.
  • No utility analysis.

Frequently asked questions

DD timeline?

30–60 days.

Phase I cost?

$2500–5000.

Lease audit who?

Property mgmt firm + attorney.

Material finding?

Walk or renegotiate.

Action checklist

  • ☐Inspector.
  • ☐Title + survey.
  • ☐Lease audit.
  • ☐Phase I.
  • ☐Utility analysis.

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