Key Takeaways
- Match inspectors to property complexity: home inspector for 1-4 units, PCA firm for 5+ units.
- Coordinate specialists on the same day, providing them with general inspection findings in advance.
- Request credits (not repairs) for maximum control over quality and contractor selection.
- Build phased CapEx plans that match spending to cash flow availability across the holding period.
This lesson recaps the field execution skills from Track 2: vendor selection, walk-through methodology, specialist coordination, repair negotiation, and CapEx planning.
Field Execution Recap
Match inspector qualifications to property type. Conduct systematic walk-throughs following consistent paths. Engage specialists for critical findings (structural engineer, roofer, HVAC tech, plumber, electrician). Coordinate multiple specialists on the same day. Rate each unit on an A-D scale and photograph everything.
Negotiation and Planning Recap
Credits are preferred over seller repairs. Focus negotiations on the 3-5 largest items (80% of costs). Present findings as professional documentation. Translate findings into phased CapEx plans. Prioritize by urgency and ROI. Adjust reserve contributions based on actual inspection findings rather than generic benchmarks.
Schedule & Milestones
Key Takeaways
- ✓Match inspectors to property complexity: home inspector for 1-4 units, PCA firm for 5+ units.
- ✓Coordinate specialists on the same day, providing them with general inspection findings in advance.
- ✓Request credits (not repairs) for maximum control over quality and contractor selection.
- ✓Build phased CapEx plans that match spending to cash flow availability across the holding period.
Sources
Common Mistakes to Avoid
Selecting inspection vendors based solely on price without verifying credentials, insurance, and sample report quality
Consequence: Low-cost vendors produce boilerplate reports that miss property-specific issues, providing false assurance that the asset is sound
Correction: Require proof of E&O insurance, relevant certifications (PE, RRC, ASHI), and review at least two sample reports before engagement
Failing to coordinate vendor access schedules, resulting in multiple site visits over weeks instead of a single coordinated inspection day
Consequence: The DD timeline stretches, tenant disruption increases, and the buyer risks missing the feasibility deadline
Correction: Create a master inspection calendar that schedules all vendors within a 1-2 day window, with property management coordinating unit access in advance
Test Your Knowledge
1.Why are credits preferred over seller repairs for addressing inspection findings?
2.How should you prioritize a safety hazard that does not increase property revenue?
3.What is the recommended minimum percentage of unit interiors to inspect?