Avoid Costly Mistakes: How Smart Investors Evaluate Apartment Deals Before Buying

If you're investing in apartment complexes, halfway due diligence won’t cut it. You need to know exactly what you’re walking into—before you sign anything. Here’s how Greg Dickerson, a seasoned real estate developer and entrepreneur, breaks it down.

This isn’t theory. This is the real-world process Greg uses to protect his investments, avoid surprises, and close with confidence.

When Do You Walk the Property?

Don’t jump the gun. Don’t even walk a property until you’ve got an accepted Letter of Intent (LOI) or you're in serious contract negotiations.

Why? Because wasting time (and money) on deals that never close is a rookie move.

Greg’s rule: “I don’t walk a property until after the LOI is accepted.” Protect your calendar, your team’s travel costs, and your mental bandwidth.

Think Like Your Future Tenant:  Assess the Surrounding Area

Before you ever step inside, assess the neighborhood. This is where your tenants will live—and what’s around them matters.

Look for:

• The condition of nearby homes

• Access to schools, shopping, parks

• General curb appeal and upkeep

A clean, vibrant area means lower turnover and stronger rent potential.

Conduct a Structural Review

After you have negotiated an accepted LOI it’s time to show up. And not just once.

Walk the property in the morning, afternoon, and evening. Each time reveals something different—traffic, noise, foot traffic, tenant behavior.

What to inspect:

• Building structure

• Roof, siding, doors, and windows

• Landscaping, sidewalks, parking, and traffic flow

Don’t rush this. You’re not just buying walls and roofs—you’re buying the full experience tenants will live in daily.

Look Closer at the Units and Amenities

Don’t skip units. Don’t guess based on a few. You need to see everything.

Check for:

• Interior damage, wear, or upgrades

• Working appliances and fixtures

• Safety systems: fire alarms, carbon monoxide detectors, sprinklers

• Common areas and amenities

Even small stuff—like cracked sidewalks or old meters—can expose deeper issues.

Evaluate the Mechanical Systems

This is where your budget can take the biggest hit if you're not paying attention.

Review the big-ticket items:

• HVAC units and heat pumps

• Plumbing systems

• Electrical panels and meters

Partial updates (e.g., new siding but old windows) = upcoming costs. Know what’s been handled and what’s still lurking.

Talk to the Tenants

This is gold. Tenants will tell you what the spreadsheet won’t.

Ask:

• How long have you lived here?

• What do you like or dislike?

• How’s the management? Maintenance?

These casual chats can surface hidden issues, tenant morale, and even uncover signs of mismanagement.

Take Notes and Use a Checklist

Don't trust your memory. Use a checklist. Take photos. Write it all down.

Greg’s mantra: “There is no supplement for thorough due diligence.”

Create a system and follow it. Every property. Every time.

Final Thoughts: Know Every Square Inch

If you’re bringing investors into the deal, your reputation’s on the line. You better know every square inch of that property.

Due diligence isn’t paperwork—it’s your defense against bad deals.

Slow down. Dig deep. Leave no corner unchecked.

When you put in this level of work, you don’t just buy a property—you make a smart, confident investment that earns.

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