05/08/2026
The buyers who get burned on distressed multifamily deals are usually the ones who skip a critical layer of investigation, one that has nothing to do with the property itself.
Before anyone on our team sets foot on-site, we look at the financial structure. If the debt load, the interest rate environment the deal was underwritten in, or the original business plan assumptions don't survive scrutiny, that's the signal to walk away. Too many deals from the post-COVID surge were built on projections that rents would climb forever. They couldn't survive a market shift, and no amount of operational improvement can fix a capital structure that was never real to begin with.
For assets that do pass that test, it's 100% unit walks, day-one capex planning, and due diligence not just on the property, but on the people who managed it before. Liens, lawsuits, and misclassified books don't disappear at closing.
Frank Gervasio, Principal and Director of Finance at OneWall Communities, breaks down the due diligence process that separates serious buyers from speculative ones.
📖 Read the full article on Real Estate Today: https://realestatetoday.com/what-most-buyers-miss-when-evaluating-distressed-multifamily-assets/
Property management is complex, and the best solutions come from shared incentives. Visit us at onewallcommunities.com or call (646) 596-7068.