Keep your eagle eye open to the unseeable! You do not want to inherit another person’s problems making the purchase your mistake. Save yourself the long-term headache and problems by doing your own due diligence when during the initial walk-through and look carefully at the house with an inspector while under contract. A lot of duplexes and multifamilies are older houses due to most having started around the great depression and before.
Deferred maintenance is a problem by landlords, which is part of the reason why a lot of houses are listed strictly “as is”. Although houses listed “as is” could just mean the seller wants a quick transaction. Either way, if a property is listed “as is” you should be wary and make sure the property you are inheriting has enough value add opportunity with it and not more problems than the house is worth to be profitable in the long run. Landlords need to consider profitability vs livability and general maintenance care for the property. As a buyer, it is best to be cautious in all instances. Yes, all problems can be fixed with time and money. However, when comparing properties one that just needs to be updated and more modern will be a far better investment than one that has electrical, plumbing, mold, and foundation problems at the same price.
This list is put together so you do not lose your money in your house hack!
Foundation Problems
Foundation problems are usually easy to see. When in the basement and you see hairline cracks those are not to be a concern. If there are cracks that you can fit your hand in and looks like blocks have shifted then having a professional check it might be good to be safe. Other signs of small foundation problems consist of gap in window frame, kitchen backsplash/ counters separated from wall, doors not closing properly (get stuck shut or can’t close), floor cracks on tile, cracks on wall,
Sloping Floors or Ceilings
Sloping floors or ceilings are another form of foundation problems and can be extremely noticeable in some houses. Then also sometimes the sloping floors are not as noticeable unless you look very closely. Where you should be concerned is if you place a tennis ball on the ground and it rolls fast one direction without any extra push. Fixing the foundation problems may not be for the novice investor. However, hiring a professional to inspect the foundation can help determine the severity of the appearance of the foundation if you believe there might be a problem. Getting a licensed foundation expert to inspect the property can give you a piece of mind to move forward with the purchase of the house based off the quote and scope of work to fix the property.
knob and Tube
knob and Tube is old school electrical wire which essentially does not have ground for the receptacle and is not made to have a large amount of volts used on the outlet. The bigger problem lies since insurance companies will not insure a house if it has knob and tube wiring in it. When an inspector is going through a house during an inspection and they see remnants of the wiring left behind it immediately raises an alarm where they recommend a licensed electrician looks at the house closer to see if the house has any live wires to be concerned about. Depending on how much live wire is live throughout the house determines how costly the conversion to copper wire will be.
Mold
Mold is another red flag to be concerned about if it is severe. If the mold is small and under control then it can most likely be taken care of easily. As always mold will be noted on the inspection report if it is found and best to have a professional to properly quote the situation and how severe it is. In some situations getting rid of mold can be as easy as painting mold removal paint over the wall the mold is on. On the other hand mold can be so severe that you need to gut the house in the worst case situations.
Termites
Termites need to be treated quickly before they cause bigger problems like destroying support beams in the house and other structural problems. When viewing properties rotten wood might not be caused by water damage like it appears when in reality the rotten wood is actually destroyed termite wood. noticing early signs of termites can save you a substantial amount of money in the long run.
Water Stains or Sagging Ceilings
Water stains or sagging ceilings are another sign of concern of a potential bigger problem. It could also be left behind from a previous repair since water stains especially on plain wood never goes away. As you can tell, there is a little bit of a common these with these list of red flags, which are that most originate in some form with water. Water overtime causes significant amount of damage.
Standing Water In a Yard
Standing Water In a Yard can cause some unneeded problems. At first, it might be able to be found when viewing the property. However, if a house has proper drainage outside and is graded land so all water will flow away from the house then
Request Current Lease
Request current lease can be forgotten about to get from new first-time purchase investors. It is important to receive a current lease for tenants in place to know their current guidelines. Even if it is a month-to-month lease that has been set in place for a longstanding 5 years or more as a new landlord you should know what rules are set to know what you are getting into. Furthermore, it reconfirms the rent to be paid and when you receive it, which is pretty important. As always, one should always inquire then validate and the lease will be the best validation tool to know how the guidelines set in place for the current renter.
