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Multifamily Due Diligence Checklist
Multi-Family USA · Printable checklist
Financial diligence
- Reconcile trailing 12-month operating statements and rent roll totals.
- Build in-place and stabilized NOI bridges with support for each adjustment.
- Stress test occupancy, concessions, bad debt, and expense inflation.
- Validate debt sizing under DSCR, debt yield, and leverage constraints.
Lease and tenant diligence
- Audit lease terms, concessions, expiration clustering, and delinquency patterns.
- Confirm occupancy reporting methodology and unit-status definitions.
- Review tenant concentration and exposure to nonrecurring occupancy drivers.
Physical and capex diligence
- Complete PCA and relevant environmental reports required by lenders.
- Map immediate-life-safety needs versus strategic value-add improvements.
- Align capex sequencing with loan covenants, reserves, and lease-up timing.
Legal and entity diligence
- Verify borrowing entity formation documents and ownership structure.
- Confirm guarantor framework, authority documents, and signature readiness.
- Review title, survey, zoning, and litigation matters before loan-doc drafting.
Debt execution and closing controls
- Track lender conditions with owner-level due dates and document status.
- Confirm reserve requirements, escrows, and cash-management mechanics.
- Verify extension tests and refinance assumptions for transitional strategies.
- Prepare post-close reporting templates before funding.