When you're evaluating a multifamily property, one of the most overlooked — yet most expensive — systems is the air conditioning equipment. Far too many investors walk into a deal focusing on rent rolls, cap rates, and cosmetic improvements, while ignoring the mechanical systems that quietly drain cash flow year after year. AC units are not optional comforts. They are critical infrastructure that directly impacts tenant satisfaction, retention, insurance claims, maintenance expenses, and long-term asset performance. This is why getting the accurate age of EVERY AC unit during due diligence is essential. 1. AC Units Have a Predictable Life Expectancy Most air conditioning systems in multifamily properties last: 10–12 years in Florida’s climate 8–10 years if poorly maintained Up to 15 years only if serviced consistently If you're buying a 100-unit property and 60 condensers are already past their life expectancy, you're staring at a six-figure capital expenditure over the next few years. Knowing the age lets you forecast actual CapEx, not guess. 2. Older Units Are Maintenance Magnets As AC units age, expect: More refrigerant leaks Failing capacitors and contactors Worn compressors Reduced cooling capacity Higher energy consumption Short cycling Older equipment doesn’t just fail more often — it costs you more every month in service calls and tenant complaints. A property with aging HVAC will quietly eat your NOI alive. 3. Insurance Companies Now Care About Mechanical Age In Florida, insurers are tightening underwriting on older AC systems due to: Fire risks from failing electrical components Water damage from clogged or failed drain pans Mold growth due to inadequate cooling Knowing the age upfront helps prevent surprises when your insurance carrier demands upgrades after closing. 4. The Age Can Affect Your Exit Strategy Buyers in 2025 and beyond are far more sophisticated. If half the AC units on your property are past life expectancy, the buyer will:

Problematic Electrical Panels Every Multifamily Investor Should Know About When analyzing a multifamily deal, investors often spend hours reviewing rent rolls, utility bills, and CapEx budgets — yet one of the most overlooked hazards in older buildings is the electrical panel. Certain panel brands and models are well-known in the inspection and insurance industries for failure risks, fire hazards, and extremely poor safety performance. A problem panel doesn’t just threaten tenant safety — it can also cause insurance denials, higher premiums, failed 4-point inspections, and even become a deal-killer during financing. Here are the electrical panels every multifamily investor should be aware of before acquiring a property. 1. Federal Pacific Electric (FPE) — Stab-Lok Panels Risk Level: Extremely High FPE Stab-Lok panels are the most notorious problematic panels in the U.S. Multiple studies have shown: Breakers fail to trip at a dangerously high rate Overheating at the bus bars Breakers falling out of place Documented fire hazards Insurance companies frequently require full replacement, and some will refuse coverage altogether. Any building still running on FPE Stab-Lok panels needs immediate attention and should be factored into CapEx. Typical replacement cost: $1,500–$4,000 per panel 2. Zinsco / Sylvania Panels Risk Level: Very High Zinsco panels (later branded Sylvania) are known for: Breakers melting to the bus bar Lost conductivity Arcing inside the panel Breakers appearing “off” but still conducting power These panels often look intact during a walkthrough, but their internal components can be heavily degraded. Many electricians recommend complete replacement over repair. Typical replacement cost: $1,800–$4,500 per panel 3. Challenger Panels Risk Level: High Challenger panels, particularly those made in the 1980s–1990s, have breakers known to: Overheat internally Cause melting and discoloration Fail under moderate load These panels were involved in multiple recalls. Insurance carriers in Florida frequently flag them during 4-points and multifamily inspections.

Cast Iron Drain Lines: What Multifamily Owners NEED to Know Cast iron drain lines are one of the biggest hidden risks in older multifamily buildings — especially in the Southeast. Most failures don’t happen overnight… they happen slowly, and the signs get ignored until repairs become very expensive. Here’s a quick breakdown so you know what to watch for: 🔧 How Cast Iron Fails Cast iron breaks down from the inside out due to: - Corrosion (rust) - Scaling - Hydrogen sulfide gas - Acidic wastewater - Age (most fail between 40–60 years) By the time you see problems above ground, the inside of the pipe is usually in rough shape. 🚨 Early Warning Signs to Watch For If you see ANY of these in a unit, post photos immediately: ✔ Slow drains ✔ Gurgling noises ✔ Backup in tubs or showers ✔ Rotten-egg smell ✔ Water stains on ceilings ✔ Soft floors around tubs or toilets ✔ Repeated plumber visits ✔ Black sludge coming up through drains These almost always point to internal corrosion or scale buildup. 🛑 Major Red Flags (High-Risk Situations) These mean the pipe is failing: - Bellies or dips in the line - Cracks or fractures in the pipe - Heavy scaling - Missing bottom of the pipe (“channel rot”) - Roots entering through joints - Large amounts of white/gray epoxy residue from old spot repairs If you have any of these, expect future failures. 💰 Typical Repair Options & Price Ranges Southeast U.S. multifamily pricing: Spot repair: $1,200–$3,500 per section Reroute (above slab): $2,500–$6,500+ Full building repipe (multifamily): $8,500–$30,000+ per stack (varies heavily) Epoxy lining: $150–$300 per linear foot(pros/cons — depends on condition) 🏚️ The “White Coating” You Sometimes See If your sewer scope shows white or light gray coating, that’s typically: - Epoxy lining - Descaling compound - Mineral buildup - Internal corrosion flakes Not all “white” = epoxy.If you’re unsure, upload your scope photos and I’ll interpret them. 📸 Post Your Cast Iron Photos or Scope Videos