XYZ Real Estate Investment Corp. is considering a direct investment in a multi-family residential property located in a growing urban area. The management team believes that the property will generate stable rental income and appreciate in value due to demand from young professionals moving into the area.

In your response, discuss the key considerations for evaluating the potential returns and risks associated with this direct real estate investment. Include factors such as location, property management, financial structure, and broader economic conditions. Additionally, explain the importance of conducting thorough due diligence before proceeding with the investment.