REAL ESTATE INVESTOR CHECKLIST

Acacia’s Real Estate Investor Checklist gives you a clear, streamlined framework to evaluate whether a deal is truly investment‑ready. It highlights the essentials—property condition, market fit, financial assumptions, risk factors, and exit strategy—so you can make confident, data‑driven decisions. Designed in plain language, it helps both new and experienced investors quickly validate a deal before moving forward.

Variables to Check:

  • Include: taxes, insurance, utilities, repairs, CapEx, turnover, management, reserves.

  • Verify: lender terms, rate resets, DSCR, amortization.

Quick Test:

  • Does cash flow stay positive under a 10–15% expense increase?

Does the Deal Remain a Positive Cash Flow After All-In Costs?

1

Are the Income Assumptions Realistic?

2

Variables to Check:

  • Validate rent comps (not broker pro forma).

  • Check renewal probability and tenant quality.

  • Confirm vacancy assumptions match the submarket.

Quick Test:

  • Does the deal still work if rents grow slower than projected?

Is the Market Strong Enough to Support the Plan?

3

Variables to Check:

  • Market classification (Tier 1/2/3).

  • Job growth, population trends, supply pipeline

  • Liquidity and investor demand at exit.

Quick Test:

  • Would another investor want to buy this in 5 years?

Are You Being Paid for the Risk?

4

Variables to Check:

  • Compare cap rate to market norms.

  • Evaluate tenant concentration and lease rollover.

  • Assess debt structure risk (IO periods, balloons, covenants).

Quick Test:

  • Does the return justify the risk profile?

Do the Numbers Hold Up Under Stress?

5

Variables to Check:

  • Vacancy

  • Rent growth

  • Exit cap rate

  • Interest rates

Quick Test:

  • Does IRR stay above your minimum even in the downside case?

Does the Deal Fit Your Strategy?

6

Variables to Check:

  • Hold period.

  • Cash flow vs appreciation goals.

  • Liquidity needs.

  • Tax strategy (cost seg, 1031, passive losses)

Quick Test:

  • Does this deal move you closer to your personal investment goals?

Can You Clearly Explain Why It’s a Good Deal?

7

Variables to Check:

  • What’s the story?

  • What’s the value creation plan?

  • What’s the exit strategy?

Quick Test:

  • Could you explain the deal in 60 seconds to another investor?

What is the Real Condition of the Property?

8

Variables to Check:

  • What is the age and remaining life of major systems (roof, HVAC, plumbing, electrical)?

  • What CapEx will be required in the next 1-5 years?

Quick Test:

  • CapEx risks: What needs to be replaced in the first 12 months?

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