SFH Due Diligence Checklist

General Real Estate Investing
1

Was wondering what others use as their most basic due diligence checklist for evaluating the purchase of a SFH.

I’ll leave price out of the equation for now…I’m more concerned with those due diligence things you check on before proceeding with a purchase.

Thanks,
-Mike

2

due diligence checklist. nice, i like that name.

sheets has something like that in his program. i believe, from just about any book on rei in the library, will have something exactly like this.

the basics would be:
property analysis:

  1. rehab analysis
  2. neighborhood
  3. financial situation

seller analysis:

  1. who, what, where, when, why, how, etc.

self analysis:

  1. finances
  2. capabilities and skills
  3. review of resources that you need to help complete the whole project, including selling it (realtor?)

buyer analysis - market analysis:

  1. who’s gonna buy it?
  2. how long will this take?
  3. how much will they pay?

property flexibility:

  1. with financing of project, is their flexibility to be creative?
  2. what incentives can be offered to sell home, if needed?

local municipality analysis:

  1. county
  2. city
  3. town
  4. village

after this, i’d say the rest is up to the attorney and title company.

due diligence checklist will change depending on the type of investment you’re making (i.e. land vs sfh vs commercial unit, etc) and also WHERE the investment is.