Due-diligence checklist

229 E Union St · Cumberland, MD 21502

MultiFamily · 3 bd / 6.0 ba · 3,680 sqft · built 1910 · listed $249,000 · MLS CFR-AQ4ZB8912PXBT0

• Title & lien report

  Confirm clear title; flag mechanics' liens, easements, or active suits.
• Seller disclosure

  Pull the seller's written disclosure for material defects + work done without permits.
• Survey & boundary

  Recent survey verifying lot lines, easements, encroachments.
• Inspection contingency

  General home inspection within 7–10 days; right to renegotiate / cancel.
• Insurance binder

  Get a written insurance quote BEFORE waiving the financing/inspection contingency.
• Rent roll (live + signed leases)

  Each unit's lease term, rent, deposit, tenant status, arrears.
• T-12 operating statement

  Income + expenses by month for the last 12 — verify what management actually does.
• Section-8 / HCV history

  Voucher rent vs market; landlord obligations + inspection history.
• Capital expenditures (5 yr)

  Roof, boiler, parking lot, plumbing, exteriors — last spend + next planned.
• Cap-ex reserve + RUBS

  Is utilities split passed to tenants (RUBS)? Reserve adequacy.
• Per-unit inspection

  Inspect each unit — landlord-friendly contracts often skip this.
• Local rent-control / stabilization

  Annual cap on raises? Just-cause eviction? Big impact on cash flow growth.
• Zoning + use compliance

  Confirm the legal unit count matches the unit count being rented.