Real Estate Investor Inspection Checklist

Here’s a comprehensive due diligence and inspection checklist tailored for evaluating special-use real estate commercial healthcare facilities (e.g., drug rehabs, nursing homes, SNFs, addiction treatment centers) prior to or during a sale. This list is structured to support environmental clearance, operational assessments, and value-preserving documentation ensuring that the asset becomes more marketable and can withstand buyer scrutiny.

There is a lot going into a transaction and the last thing you need before you go to closing is some sort of an environmental or other technical issue that you did not see ahead of time.  This can significantly delay or even kill a deal from closing.

Facility & Infrastructure Inspection Checklist

1. Environmental & Engineering

• Phase I Environmental Site Assessment (ESA)
• Phase II ESA (if Phase I flags concerns)
•  UST (Underground Storage Tank) Investigation
  • Are there USTs on site?
  • MNI (Mechanic’s Notice of Intent) documentation
  • Removal plan and “No Further Action” (NFA) letter from DEP/EPA
  • Soil sampling and lab analysis for petroleum or heavy metal contamination
•  Soil Boring/Geotechnical (USP boring samples)
  • Required for structural re-use or redevelopment
  • Determine soil load-bearing, contamination
•  Soil Dumping/Disposal
  • Confirm tipping fees and transport logistics
  • Identify whether hazardous or non-hazardous
•  Asbestos & Lead-Based Paint Survey
  • Especially for buildings pre-1980s
  • Include friable/non-friable material classification
•  Radon Testing (if required in state)
•  Mold & Moisture Intrusion Testing

2. Building Envelope

•  Roof System
  • Year installed
  • Warranty information
  • Roofing type (EPDM, TPO, Shingle, etc.)
•  Windows/Doors
  • Age and condition
  • Fire-rating and egress compliance
•  Exterior Façade
  • Structural issues, cracks, spalling, water infiltration

3. Mechanical, Electrical, Plumbing (MEP)

•  Boiler(s)
  • Photos of rating plates
  • Make, model, serial number
  • Date installed and inspection history
•  HVAC Systems
  • Age, tonnage, zone layout
  • Any energy management systems?
•  Electrical Systems
  • Ampacity and capacity of panels
  • Life safety backup power/generators
•  Plumbing Systems
  • Hot/cold manifold—document installation years
  • Copper, PEX, CPVC or galvanized?
•  Sprinkler/Fire Protection
  • Date of last NFPA inspection
  • Backflow certification status

4. Water Source and Wastewater

•  Onsite Aquifer (Well)
  • GPM output
  • Water quality tests (coliform, nitrates, metals)
•  Sewer System
  • Public vs septic system
  • Pumping/inspection logs
•  Stormwater System
  • Condition of catch basins
  • SWPPP (if required)

5. Zoning, Permitting, and Legal

•  Zoning Confirmation Letter
  • Include conditional/special use permit documentation
•  ACT A Survey (Access, Circulation, and Traffic Analysis)
•  Certificate(s) of Occupancy
•  Permit Jacket
  • Full record of all permits pulled and finaled
  • Recent code violations and corrections
•  Fire Marshal Reports
•  ADA Compliance Review
  • Entrances, ramps, signage, elevator access

6. Operational & Deferred Maintenance

•  Deferred Maintenance Log
  • Roof leaks, cracked pavement, damaged drywall, HVAC cycling, etc.
•  Facility Maintenance Records
•  Previous Capital Improvements
•  Known Utility Issues

7. Interior Spaces

•  Room Counts by Use Type
  • Treatment rooms, bedrooms, med storage, dining
•  Fire-Rated Assemblies
  • Hallways, resident doors, utility closets
•  Ceiling Type
  • ACT grid, gypsum—check water damage
•  Flooring Condition
  • Infection control surfaces (e.g., rubber base, seamless sheet vinyl)

8. Licensing & Regulatory Position

•  Past Use History (SNF, Detox, etc.)
•  State Licensing History
•  Any active enforcement actions or deficiencies
•  CMS Certification (if applicable)

9. Photos and Documentation

•  Full interior and exterior walk-through
• Utility room, boiler, panels, UST areas
• Copies of:
  • Environmental reports
  • Survey & site plans
  • Zoning & permits
  • Title report & easements
  • Property tax card

Bonus: Marketability Enhancers

•  Recent appraisals (if available)
•  Third-party engineering report
•  Drone footage for marketing
•  Renderings or conceptual redevelopment plans

This type of report can be scoped into three tiers (light review, intermediate pre-market prep, and full buyer-side diligence), depending on your budget and listing timeline. Let me know if you want a version formatted for a template or PDF handout?