Offer accepted on my first CRE property (100-unit class C Multi-Family Property in Texas.
I am looking for any advice from anyone with experience can give me.  Due Diligence is right around the corner so this is the area I am looking for advice.  Who do I bring with me on my walk?  What am I looking for (outside of things relating to my business plan for the property and anything to do with administrative stuff like tenants/leases etc.) 

What can I bring up to ask seller to fix/credit me back for?
[{"id": "icw4kt5", "text": "I am the deal Sponsor/GP and Property Management company.  I know I am going all in from the beginning but that\u2019s just how it is.", "replies": [{"id": "icxoow5", "text": "Who\u2019s on your team? General contractor? CPA? Lender? RE attorney? Insurance broker? Even just a handyman?", "replies": [{"id": "id05n8z", "text": "Attny, CPA, and well seasoned Head of maintenance for his career and an overall great guy who I am going to bring with me because he has an eye for most stuff as he has worked at great properties and some really crappy properties where he had to deal with shit management and just did the best he could.", "replies": [{"id": "id05v2p", "text": "Unless you\u2019re going to post the address. Those people are going to be a better resource than Reddit. \n\nOn your executory contracts, what\u2019s rolling over vs terminated?", "replies": [{"id": "id06k30", "text": "This is something to chat about with the attorney working this for me.  I may post address at a later date.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "icw6v72", "text": "Consult Ben Mallah to find out", "replies": [{"id": "icwazh7", "text": "Thank you for this laugh", "replies": [], "depth": 2}, {"id": "id0623r", "text": "Who TF is that and based on someone laughing at your comment I will consider you a clown poster.... My best assumption is that you just suggested some ass like Grant Cardone  as the person I should listen to and seek help from, no gracias por favor.", "replies": [], "depth": 2}], "depth": 1}, {"id": "icw771b", "text": "Rise in interest rates. \ud83d\ude09", "replies": [], "depth": 1}, {"id": "icw848y", "text": "Just DMed you.", "replies": [], "depth": 1}, {"id": "icw9m21", "text": "You should wait until the PCA and other third party reports come back before making the ask - they\u2019re going to tell you more than what you can glean on a walkthrough", "replies": [{"id": "id05y0q", "text": "Yes that makes sense.  I am just a very proactive person-- which is not the worst thing on earth.", "replies": [], "depth": 2}, {"id": "id06thj", "text": "This is good advice go with one of the big shops for this that has a good reputation in your market.", "replies": [], "depth": 2}], "depth": 1}, {"id": "icwc5iv", "text": "Congrats!\n\nI have provided a similar response recently about the due diligence.\n\nThis is a list with items that I usually request : \n\nTENANTS\r  \n\r  \na) All Leases, Amendments\r  \n\r  \nb) Vacant Spaces\r  \n\r  \n3) Renewals and expirations within 6-12 months (probability of tenants to renew the spaces)\r  \n\r  \n4) Financial Information of the tenants\r  \n\r  \n5) Future obligations of the landlord as stipulated in the leases - such as commissions, TIs, etc.\r  \n\r  \n\r  \n\r  \n2) FINANCIALS\r  \n\r  \na) Rent rolls (to be reviewed in conjunctions with the leases)\r  \n\r  \nb) Income Statements for the past 2-3 years\r  \n\r  \nc) Balance Sheet\r  \n\r  \nd) Operating budgets for the current year + prior 2 years\r  \n\r  \ne) CAM recoveries - most recent calculations and invoices sent to the tenants\r  \n\r  \nf) Property tax bills, utility bills\r  \n\r  \ng) Capital Improvement schedules (with original cost, interest and amortization schedules)\r  \n\r  \nh) Security Deposits of the tenants (verify if what the LL has in its books matches with the leases)\r  \n\r  \ni) Copy of the current AR report\r  \n\r  \nj) Other outstanding obligations of the landlord\r  \n\r  \nk) Estoppel certificates from each tenant\r  \n\r  \nl) Tax assessments\r  \n\r  \nm) Review existing mortgage documents and other restrictive covenants\r  \n\r  \n\r  \n\r  \n3) PROPERTY\r  \n\r  \na) title search and zoning review\r  \n\r  \nb) loan documents\r  \n\r  \nc) floor plans with BOMA surveys (review if the GLA of the units matches with the BOMA surveys)\r  \n\r  \nd) Appraisal report to see the appraised value of the property\r  \n\r  \ne) Property Condition report\r  \n\r  \nf) Environmental reports - min Phase 1 , if applicable go to Phase 2 report\r  \n\r  \ng) Engineering reports - structural and seismic\r  \n\r  \nh) Geotechnical reports\r  \n\r  \ni) Roof reports (maintenance reports, inspection reports)\r  \n\r  \nj) HVAC condition assessment (maintenance, service history, 3rd party assessment)\r  \n\r  \nk) Electrical Distribution (power availability, upgrades )\r  \n\r  \nl) Outstanding code deficiencies from the city to see if there are any outstanding orders, notices etc.\r  \n\r  \n\r  \n\r  \nOTHERS\r  \n\r  \na) Copies of all service agreements (including fire alarm monitoring, fire and life safety ,mechanical, elevator, plumbing, electrical)\r  \n\r  \nb) Copies of all utilities bills and accounts for 6-12 months\r  \n\r  \nc) Building plans - base building, TIs (cad or pdf files)\r  \n\r  \nd) List of open permits\r  \n\r  \ne) Warranties\r  \n\r  \nf) Building chattels\r  \n\r  \ng) Discuss with the current tenants to see their opinion about the property\r  \n\r  \nh) Summary of open projects\r  \n\r  \ni) Copies of all COIs for the tenants\r  \n\r  \nj) Safety plan\r  \n\r  \nk) Complete Tenants' contact list\r  \n\r  \n\r  \n\r  \nINVESTMENT ANALYSIS\r  \n\r  \na) Discounted Cash flow analysis\r  \n\r  \nb) Leasing assumptions for your market (market rents, rent abatement, expected vacancies)\r  \n\r  \nc) Cap rate analysis\r  \n\r  \nd) Financing analysis (if you plan to get a mortgage)\r  \n\r  \nLEASING\r  \n\r  \na) Analyze sales/ lease rates\r  \n\r  \nb) Review city's plans for future developments in the area\r  \n\r  \nc) Zoning review\r  \n\r  \nd) Restrictive Covenants\r  \n\r  \n\r  \nThis should be a good starting point. \n\n&amp;#x200B;\n\nFeel free to DM if you need additional info or you  need assistance with the process.", "replies": [{"id": "icwhhwu", "text": "Pretty much sums it up.", "replies": [{"id": "icwhva7", "text": "Almost ...\n\nHaving good professionals and knowing what/whom to ask for advise will make a transitions smoother.", "replies": [{"id": "id03p0p", "text": "I have people who have been through the ringer 100s of times but they never did this full circle like I am.  I am trying to make sure I have all the right people in my corner as this is the first of many deals.  Once I have been able to get my beak wet a little and a few more acquisitions I think I will be well versed for a newer entrant to this MF Marketplace.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "icwmloo", "text": "Incredible thank you.", "replies": [], "depth": 2}, {"id": "icws6qp", "text": "Never delete this comment it\u2019s gold! Thank you!", "replies": [{"id": "icwt756", "text": "No worries .\n\nI have always tried to provide my clients with the best advice possible and  find ways to increase the value of their investments. \n\nHaving a checklist helps a lot , but there is also a lot of knowledge &amp; experience that would be needed when purchasing / managing a commercial property.\n\nFor example I have seen a lot of engineering reports that would look at a roof (as part of a due diligence process) and claim that a 20y old EPDM 45mm roof has to be replaced.\n\nFrom my experience, an EPDM roof can be upgraded (restore all the seams and other areas where 90% of the leaks usually occur)  and increase the life expectancy of the roof by min 5-7 years. \n\nFrom a cash flow perspective - an owner will gain significantly, paying 10% of the cost of a new roof and deferring a big capital expenditure by 5-7 years.", "replies": [{"id": "icyflpu", "text": "That\u2019s absolutely true but sometimes a new roof plus 20-25 year warranty can be worth it for a long term hold.", "replies": [{"id": "icys6qi", "text": "Each person might look at this through different lenses, but I never had a customer/client who wanted to spend 500k now instead of deferring this expense 5y in the future.\n\nWithout being too technical, I do this simple calculation to support my recommendation:\n\n1) A new roof of 500k and 20y amortization will have an annual amortization in the books of 25k\n\n2) A roof upgrade of 50k and 5y amortization will have a book value of 10k.", "replies": [{"id": "icytccy", "text": "Our group mostly owns high rise multifamily and office properties so while I 100% understand that calculation and appreciate where it comes from the cost benefit analysis is swayed by the potential cost of remediation from an aging faulty roof. From a downtime expense and remediation expense that may occur from a leak we usually take the more operationally conservative view and fix items closer to their traditional end of life vs. potential cost saving improvements. This is also an expense  that we can pass on to our tenants either through CAMs or rental increase.", "replies": [{"id": "id04fr4", "text": "CAMs?  Certified Apartment Manager does not seem to fit your comment.  Would you mind elaborating a little here?", "replies": [{"id": "id06eok", "text": "Common Area Maintenance (CAMs) are a very common term in commercial properties and leases, it\u2019s how landlords pass common costs along to their tenants. Our group owns high rise office, medical and multifamily properties and industrial properties.\n\nI haven't heard of Certified Apartment Manager terminology being used before, I have heard of certified property managers. I am not very focused on that side of the business as I only deal with senior asset management executives that would likely often be multiple levels removed from property level managers at one of our apartments.", "replies": [{"id": "id08tg9", "text": "Ok so things like RUBS...", "replies": [{"id": "id09qjk", "text": "Sort of, but not, RUBs is specifically for recovering utilities usually when the units are not individually metered. CAMS can be for anything from utilities for the common areas to much larger line items which are more capital expenses such as a new roof, earthquake retrofitting, etc. They can also cover services like landscaping, janitorial, etc. CAMs are common in commercial properties more so than multifamily but they can be employed in larger multifamily projects as well for high unit count properties or things like student housing.", "replies": [], "depth": 10}], "depth": 9}], "depth": 8}], "depth": 7}], "depth": 6}, {"id": "id045h3", "text": "Sounds perfectly reasonable", "replies": [], "depth": 6}], "depth": 5}, {"id": "id042pp", "text": "&gt;This is not a long term hold property but with uncertainty in the economy, who really knows?", "replies": [], "depth": 5}], "depth": 4}, {"id": "id03yp7", "text": "&gt;The roofs seem to be in very good shape-- Maybe replaced in the last few years?", "replies": [], "depth": 4}], "depth": 3}, {"id": "id03q0n", "text": "I appreciate the love! I have worked extremely hard to get myself into this position.", "replies": [], "depth": 3}], "depth": 2}, {"id": "icyfely", "text": "This is the good beginnings of a due diligence check list.", "replies": [], "depth": 2}, {"id": "icyrdtj", "text": "Need to look at current competition as well as any future planned development s", "replies": [], "depth": 2}, {"id": "icz7kp0", "text": "Good start good stuff. And a few of those items if not more will require a deeper dive depending on what you uncover lololol.", "replies": [{"id": "id04kt3", "text": "Absolutely.", "replies": [], "depth": 3}], "depth": 2}, {"id": "id03g9q", "text": "Man, thank you for this exhaustive list-- I may have to circle back with you on a couple of theses items as some of them I know as standard practice, some I know of these are good to ask for, and a few I am unaware of.  I will probably DM this week. Cheers.", "replies": [], "depth": 2}, {"id": "id06qps", "text": "In your experience, asuming you have sent this list out more than once... where do you get the most push back?  and which of these items are absolutley required to provide... You may not be an attorney but a seasoned vet would know just as well.", "replies": [{"id": "id31jyi", "text": "A checklist is just a checklist. \nUnderstanding the full cycle of the due diligence and why you would need specific things from the seller might increase the chances to obtain the returns that you want for your investment while minimizing risks.\n\nI am not a lawyer , just a real estate professional.", "replies": [], "depth": 3}], "depth": 2}, {"id": "id0tox8", "text": "I love you", "replies": [], "depth": 2}, {"id": "id7bzby", "text": "Good list, but a lot of this doesn\u2019t apply to multifamily.", "replies": [], "depth": 2}], "depth": 1}, {"id": "icwh4mn", "text": "how did you get accepted on a 100 unit property and not know what to do in due diligence?", "replies": [{"id": "icwhira", "text": "This is true", "replies": [], "depth": 2}, {"id": "icwhm5h", "text": "Exactly my first thought.", "replies": [], "depth": 2}, {"id": "icwieqz", "text": "Probably $30k a door\u2026", "replies": [{"id": "id073t9", "text": "Not even close", "replies": [], "depth": 3}], "depth": 2}, {"id": "icwmk2z", "text": "What could go wrong? /sarcasm", "replies": [{"id": "id077qq", "text": "I cant be bothered thinking negatively at this point.  I am well educated and I have some experience with MF", "replies": [], "depth": 3}], "depth": 2}, {"id": "icx3iqr", "text": "Posts like this literally give me nightmares. \n\nProbably using a bridge loan, no doubt.\n\nThis is going on 100x in almost every third tier market, it's going to be a rude awakening when those 15% year over year PGI bumps in his pro forma don't end up happening.\n\nWho is trusting this guy with their equity? What bank is loaning him money?\n\nThis is not going to end well.", "replies": [{"id": "icyrmvi", "text": "I don\u2019t see the issue? Some of the comments are already declaring this a failure and acting like OP is naive. Everyone has to start somewhere, even if it\u2019s a bigger deal. He/she is asking for help and with the right people surrounding them who\u2019s to say this isn\u2019t a great deal? I support you OP! You\u2019re doing the right thing by making sure you have the right people around you and make sure you ask the right questions!", "replies": [], "depth": 3}, {"id": "id08enk", "text": "People who believe in me. Everyone gets their start somewhere.  Your comment is garbage because you have nothing to back why this is a failure.  \n\nYou can stop your nightmares because my debt is guaranteed.  LOL and my model is pretty dam good and in no way would I make assumptions I cant hold up.  That would bar me from ever putting together another deal, so why in the hell would I do that to myself?  This is not a one and done my friend.", "replies": [], "depth": 3}], "depth": 2}, {"id": "icyuetf", "text": "the issue is if you dont know how to conduct DD on a 10 unit then you\u2019re in for trouble on a 100 unit. and while reddit may be a good source for info, we cant teach every nuance op may encounter - and likely why others express concern. find an experienced partner to not get badly hurt on that size deal. im sure we\u2019re all happy for op but its odd to see this green of an investor secure a 100 unit property.", "replies": [{"id": "iczp8iv", "text": "Agreed and I completely understand the concerns, just think it\u2019s completely premature and dangerous to already assume it will be a failure. Definitely don\u2019t think just sourcing Reddit for info is enough. I interpreted it as OP was looking for an experienced partner and/or mentors to help them through the deal and if so, I applaud the courage!", "replies": [{"id": "id07e32", "text": "Thank you Thank you.  THIS GUY GETS IT!", "replies": [], "depth": 4}], "depth": 3}, {"id": "id07xwt", "text": "&gt;I have been on several DD walks on 300+ unit complexes.... the only difference is I was just a measly employee and now I am running the show.  I will not follow any single persons prescription for me, rather I look at all the great advice that has been spread through this thread and I have now surveyed some very intelligent people... The alternative would be to have never posted....  You never know what you will uncover/find out if you never make the ask.\n\nGreen, yes fine if that is what  you want to label me as, but if you understood that I have been able to secure Private Equity from great sources, you would then maybe understand that I am not some uneducated person shooting from the hip.", "replies": [], "depth": 3}], "depth": 2}, {"id": "id01a9o", "text": "Probably no other offers near his.", "replies": [], "depth": 2}, {"id": "id0731s", "text": "Haha I have experience in the field but I like to know what others think on the subject.  The real question you ought to be asking yourself is how did I raise the equity...", "replies": [], "depth": 2}], "depth": 1}, {"id": "icwimg2", "text": "Are you under contract or LOI accepted? There are a ton of items to review. \n\nI\u2019ll chime in on title and survey review. You need to submit title objections. Understand the easements and other restrictions on your land. \n\nI\u2019d you share the market, you can add or remove some things based on cost.", "replies": [], "depth": 1}, {"id": "icwq66g", "text": "Have you tried asking the r/slumlords subbreddit?", "replies": [{"id": "id05dyx", "text": "I suppose I could, never been to this subreddit but the name sounds like a place I should stay way TF away from as I don't ever want to come close to acting like a slumlord :)", "replies": [], "depth": 2}], "depth": 1}, {"id": "icwtmdx", "text": "You should be able to find the top three or four quality PMs in your market. They all should be able to help gather vendors for your on-site inspections for a fee. Usually $75-100 per unit but I've seen flat fees. They will show up in teams to break up the work and interior unit inspections. Be prepared to float or follow the PM lead and walk the units.\n\nAny units you can't get in, negotiate to view it later of get a condition credit. Also and non rent ready units, negotiate a credit or rent ready clause. We usually get a 3-5k credit or the seller can make sure those units are rent ready 5 days before closing, subject to final inspection.\n\nOn the day, we bring: \\_\n\n* PM for lease audits..Audit every single lease match every unit with an in place tenant on the rent roll..critical\n* Roofing company - get a bid for any repairs\n* HVAC -- could be a vendor or PMs certified tech. Get serial numbers make and models etc to check ages\n* Landscape - get bid for ongoing maintenance, tree trimming and any drainage issues -- Parking lot repair company- get repair bid\n* Security system Vendor including any exterior gates - if installing key fob system, find company to give you a bid\n* Exterior Painting / carpentry -- Class C typically needs paint and woodwork --\n* Contractor/Interior Renovation specialists -- walk EVERY unit!! Take pictures and notes in conditions of units..pictures of mechanicals..Gather serial numbers of water heaters if possible\n* Designer or leasing PM for interior reno package\n* PM's maintenance lead\n\nAgain, most larger multifamily PMs have resources and experienced vendors for all of these and can handle your DD for you.\n\nDon't close without a local Texas atty. They will handle your title objections, entities and loan doc negotiations.\n\nYou need to get a copy of any existing survey from the seller, push it to your lenders legal debt and title. If they require an update or a new one get on it QUICK..Surveys can take 4-5 weeks and can jack up your deal if you miss this.\n\nHave fun. We have close to 1000 units in Texas. Very familiar.\n\nEDIT: I know you plan to manage yourself but hiring a PM for DD will really allow you to manage the process better. Who knows, you may decide to just asset manage and let the run the property based on their DD performance and professionalism!!", "replies": [{"id": "id053p1", "text": "&gt;Thanks so much for the very knowledgeable insight.  To be clear, I will absolutely have a PM on sight as well as maintenance but they will just happen to work for me and no longer the previous property management company.  I do not have any time to be a PM.... I will be an Asset Manager", "replies": [], "depth": 2}], "depth": 1}, {"id": "icwz6s7", "text": "Congrats!\n\nI have provided a similar response recently about the due diligence.\n\nThis is a list with items that I usually request :\n\nTENANTS\n\na) All Leases, Amendments\n\nb) Vacant Spaces\n\n3) Renewals and expirations within 6-12 months (probability of tenants to renew the spaces)\n\n4) Financial Information of the tenants\n\n5) Future obligations of the landlord as stipulated in the leases - such as commissions, TIs, etc.\n\n2) FINANCIALS\n\na) Rent rolls (to be reviewed in conjunctions with the leases)\n\nb) Income Statements for the past 2-3 years\n\nc) Balance Sheet\n\nd) Operating budgets for the current year + prior 2 years\n\ne) CAM recoveries - most recent calculations and invoices sent to the tenants\n\nf) Property tax bills, utility bills\n\ng) Capital Improvement schedules (with original cost, interest and amortization schedules)\n\nh) Security Deposits of the tenants (verify if what the LL has in its books matches with the leases)\n\ni) Copy of the current AR report\n\nj) Other outstanding obligations of the landlord\n\nk) Estoppel certificates from each tenant\n\nl) Tax assessments\n\nm) Review existing mortgage documents and other restrictive covenants\n\n3) PROPERTY\n\na) title search and zoning review\n\nb) loan documents\n\nc) floor plans with BOMA surveys (review if the GLA of the units matches with the BOMA surveys)\n\nd) Appraisal report to see the appraised value of the property\n\ne) Property Condition report\n\nf) Environmental reports - min Phase 1 , if applicable go to Phase 2 report\n\ng) Engineering reports - structural and seismic\n\nh) Geotechnical reports\n\ni) Roof reports (maintenance reports, inspection reports)\n\nj) HVAC condition assessment (maintenance, service history, 3rd party assessment)\n\nk) Electrical Distribution (power availability, upgrades )\n\nl) Outstanding code deficiencies from the city to see if there are any outstanding orders, notices etc.\n\nOTHERS\n\na) Copies of all service agreements (including fire alarm monitoring, fire and life safety ,mechanical, elevator, plumbing, electrical)\n\nb) Copies of all utilities bills and accounts for 6-12 months\n\nc) Building plans - base building, TIs (cad or pdf files)\n\nd) List of open permits\n\ne) Warranties\n\nf) Building chattels\n\ng) Discuss with the current tenants to see their opinion about the property\n\nh) Summary of open projects\n\ni) Copies of all COIs for the tenants\n\nj) Safety plan\n\nk) Complete Tenants' contact list\n\nINVESTMENT ANALYSIS\n\na) Discounted Cash flow analysis\n\nb) Leasing assumptions for your market (market rents, rent abatement, expected vacancies)\n\nc) Cap rate analysis\n\nd) Financing analysis (if you plan to get a mortgage)\n\nLEASING\n\na) Analyze sales/ lease rates\n\nb) Review city's plans for future developments in the area\n\nc) Zoning review\n\nd) Restrictive Covenants\n\nThis should be a good starting point.\n\n\nGreat comment", "replies": [{"id": "icx1hjb", "text": "Try to be original next time not just copy others' people posts, especially if you want to bring value to a discussion.", "replies": [], "depth": 2}], "depth": 1}, {"id": "icyl9g3", "text": "Usually, your property management company is the people you bring.  A credible property management company can usually provide you a list of items they check, and you can cross-reference what you have on the list.  Hence, a trusty, credible, and reliable property management company is who you bring.", "replies": [{"id": "id061bu", "text": "&gt;I plan on bringing some all-stars with me", "replies": [], "depth": 2}], "depth": 1}, {"id": "id7l321", "text": "Sent you a PM.", "replies": [], "depth": 1}]