Deal Analysis
Checklist · Author: Austin Coon
Underwriting tells you what a property should do. Due diligence tells you what it actually does. The gap between those two numbers is where most bad deals hide — this checklist closes it before your earnest money is at risk.
Work it in order: income first, expenses second, the physical plant third, and the paperwork last. Every item has a document; if a seller won’t produce it, underwrite the answer as zero.
How long should due diligence take?
Two to three weeks on a single-family rental: one week for documents, one for the inspection and quotes, and the margin for negotiating repairs. Don’t waive what you haven’t verified.
What’s the most commonly fudged number?
Rents. A rent roll is a summary; deposits are evidence. Reconcile claimed collections against the bank statements every time.
Who helps with this?
Austin runs this checklist with investor clients before offers go out — including pulling county records and reconciling the rent roll. Bring the address to a consultation and go through it line by line.