Part 3: The Complete 2025 Due Diligence Checklist - Your Reference Guide

In Part 1, you discovered what changed in 2025 - the new risks reshaping real estate due diligence, from climate concerns to technology disruptions to hidden costs that crush returns.

In Part 2, you saw the costly mistakes others made - from trusting seller numbers to missing environmental red flags - and the property-specific landmines waiting in multifamily, retail, industrial, and office deals.

Today, I'm giving you the complete playbook - the comprehensive checklist that ensures nothing slips through the cracks on your next investment property purchase.

Print this. Save this. Use this on every deal.

☐ Review 24-36 months of income statements and P&L
☐ Verify rent rolls against actual lease agreements
☐ Confirm tenant payment history and collection rates
☐ Review security deposits and verify escrow account
☐ Analyze operating expenses for the past 24 months
☐ Verify property tax history and assess potential reassessment impact
☐ Review insurance statements and claims history
☐ Examine utility bills and reimbursement arrangements
☐ Calculate and verify Net Operating Income (NOI)
☐ Review capital expenditure history and deferred maintenance
☐ Analyze rent comparability vs. market rates
☐ Verify debt service obligations and loan terms

☐ Hire licensed inspector for comprehensive property inspection
☐ Assess structural integrity (foundation, framing, load-bearing elements)
☐ Evaluate roof condition, age, and remaining useful life
☐ Inspect HVAC systems - age, condition, maintenance records
☐ Review electrical system capacity, panel condition, code compliance
☐ Inspect plumbing systems, fixtures, water pressure
☐ Evaluate parking areas, driveways, and site drainage
☐ Assess building envelope (windows, doors, insulation)
☐ Review ADA compliance and accessibility requirements
☐ Inspect fire safety systems (alarms, sprinklers, extinguishers)
☐ Evaluate elevator systems (if applicable) - inspection certificates
☐ Check for pest issues, mold, or water intrusion
☐ Review landscaping, irrigation, and exterior maintenance needs
☐ Obtain land survey to verify boundaries and easements
☐ Inspect common areas and amenities condition

☐ Order comprehensive title search and title insurance commitment
☐ Review all liens, encumbrances, and judgments
☐ Verify easements, rights-of-way, and restrictions
☐ Confirm zoning compliance and permitted uses
☐ Review all recorded covenants and deed restrictions
☐ Verify certificates of occupancy and business licenses
☐ Review all permits for improvements and additions
☐ Check for pending litigation or disputes
☐ Verify property boundaries match legal description
☐ Review HOA documents and bylaws (if applicable)
☐ Confirm no pending condemnation or government actions
☐ Review all service contracts and vendor agreements

☐ Order Phase I Environmental Site Assessment (ESA)
☐ Order Phase II ESA if Phase I indicates concerns
☐ Conduct climate risk assessment (flood, wildfire, hurricane zones)
☐ Verify FEMA flood zone designation and insurance requirements
☐ Screen for asbestos, lead paint, and mold
☐ Check for underground storage tanks (current or historical)
☐ Review soil and groundwater contamination history
☐ Assess radon levels (if applicable by region)
☐ Verify compliance with environmental regulations
☐ Evaluate energy efficiency and carbon footprint

☐ Research local market vacancy rates and trends
☐ Analyze comparable property sales and rental rates
☐ Review absorption rates and time-on-market data
☐ Assess demographic trends and population growth
☐ Evaluate employment rates and major economic drivers
☐ Research planned infrastructure or development projects
☐ Analyze competitive properties and their performance
☐ Review neighborhood quality, crime statistics, school ratings
☐ Assess transportation access and traffic patterns
☐ Evaluate future supply pipeline and new construction

☐ Verify tenant credit reports and financial strength
☐ Review all lease agreements and amendments
☐ Analyze lease expiration schedule and rollover risk
☐ Verify rent escalation clauses and renewal options
☐ Review tenant improvement allowances and obligations
☐ Confirm common area maintenance (CAM) charges accuracy
☐ Assess tenant concentration risk (largest tenants)
☐ Review co-tenancy clauses and exclusive use provisions (retail)
☐ Verify percentage rent arrangements (retail)
☐ Evaluate tenant satisfaction and retention likelihood
☐ Review history of tenant disputes or defaults
☐ Obtain tenant estoppel certificates

☐ Assess internet and telecommunications infrastructure capacity
☐ Evaluate smart building systems and automation
☐ Review security systems and access control
☐ Verify electrical capacity for modern technology needs
☐ Assess remote work capabilities and flexibility (office properties)
☐ Review building management systems (BMS) and controls
☐ Evaluate EV charging infrastructure (current or planned)
☐ Verify compliance with energy efficiency standards

☐ Confirm property insurance availability in current market
☐ Obtain binding insurance quotes with actual premium costs
☐ Verify adequate coverage for property value and liability
☐ Review claims history for past 5 years
☐ Confirm flood insurance availability and cost (if required)
☐ Assess natural disaster coverage (hurricane, earthquake, wildfire)
☐ Verify business interruption and loss of rent coverage
☐ Review umbrella liability policy requirements

Note: Costs vary by property size, complexity, and location

1. Start Early - Begin due diligence immediately after contract execution. Don't waste time.

2. Prioritize Critical Items - Lead with Phase I environmental, structural inspection, and title search. These take longest and reveal deal-killers.

3. Run Parallel Processes - Don't do everything sequentially. Order multiple reports simultaneously to compress timeline.

4. Build Your Team - Line up professionals before you need them:

5. Document Everything - Create a due diligence binder (physical or digital) with all reports, correspondence, and findings organized by category.

6. Red Flags = Stop Sign - If you discover major issues, pause and reassess. Don't let emotions or "deal fever" push you past legitimate warnings.

Terminate the deal immediately if you discover:

Use findings to adjust terms when you discover:

This checklist is your insurance policy. The $5,000 you spend on comprehensive due diligence can save you $500,000 in post-closing disasters.

The best deals are often the ones you don't do. When due diligence reveals fundamental problems, walking away is winning. You protected your capital and avoided a nightmare.

Due diligence costs are always less than surprise costs. Every item on this checklist exists because someone, somewhere, got burned by skipping it.

Use this checklist on every deal. Print it. Save it. Reference it. Make it your standard operating procedure.

The difference between successful real estate investors and those who lose their shirts? The successful ones do the work upfront. They verify everything. They trust nothing. They use checklists like this one.

☑ Save this checklist to your reference folder
☑ Print a copy for your due diligence binder
☑ Share with your team - partners, attorneys, property managers
☑ Customize for your specific market and property types
☑ Use it on your next deal (and every deal after)

Got questions about implementing this checklist on a specific property? Need help assembling your due diligence team? That's what I'm here for.

The investors who win are the ones who do the work.

Now you have the playbook. Go use it.

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Book Shelf from Brett Vogeler: amazon.com/author/bvogeler

 Need a roadmap? Reply in the comments section or send us an email for assistance.  360 Perspective Partners offers Professional Licensed Business, Commercial and Investment Brokerage Services along with providing Professional Licensed Community Management Services in Central Florida: https://my360perspective.com/

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