A rental property is not only a building. It is a bundle of leases, obligations, operating evidence, physical systems, and future capital needs. Underwrite all of them before the inspection and financing deadlines expire.
01 / Identity
Verify what is being purchased and how it may be used.
Match the contract to the legal description, parcel record, unit count, current use, certificates, permits, and recorded restrictions. Review open permits, code matters, liens, assessments, and work completed without documentation. Confirm the intended rental use with the relevant local authorities and qualified professionals rather than relying on marketing remarks.
Property file
- Title, survey, parcel and legal description
- Permits, certificates, open violations and municipal searches
- Zoning, legal unit count and rental restrictions
- Tax record, assessments and utility responsibility
- Insurance claims and available inspection reports
02 / Income
Audit every lease, deposit, and payment record.
Reconcile the rent roll to signed leases, bank evidence, concessions, delinquencies, notices, security deposits, prepaid rent, renewals, side agreements, and tenant claims. Do not treat scheduled rent as collected income. Florida Statutes Chapter 83 addresses residential tenancies, including deposits, landlord obligations, access, notices, remedies, and certain disclosures; obtain current legal guidance for the facts of the acquisition.
03 / Building
Translate condition into timing and cash requirements.
Use appropriately qualified inspectors and specialists to review structure, roof, drainage, electrical, plumbing, HVAC, moisture, pests, safety items, appliances, common areas, and deferred maintenance. Build a repair schedule that distinguishes immediate health or habitability work from recurring maintenance and later capital replacements.
04 / Rules
Confirm the operating obligations that survive closing.
Review applicable landlord-tenant rules, local registrations, licensing, inspections, fair-housing requirements, building and fire rules, flood disclosures, and association requirements. For most pre-1978 housing, federal rules require specified lead-based-paint information and disclosures before a sale or lease. Confirm coverage and exceptions directly with counsel and current agency guidance.
05 / Economics
Rebuild the operating statement from evidence.
Normalize collected rent, vacancy, bad debt, utilities, repairs, landscaping, pest control, management, insurance, taxes, association charges, licensing, bookkeeping, reserves, and turnover. Separate one-time items from recurring expenses and request support for material figures. Then test lower rent, vacancy, repairs, insurance increases, tax reassessment, and delayed leasing.
06 / Control
Turn unresolved diligence into written conditions.
Maintain a decision log showing each issue, supporting document, responsible reviewer, estimated cost, deadline, and resolution. Material gaps should become a closing condition, price adjustment, escrow, contractual protection, revised business plan, or reason not to proceed.