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Is Buying A House A Good Investment?

A cautionary tale to heed…

In trying to answer the age-old question, “is real estate a good property investor risksinvestment?” I’d like to submit this little tale of woe about the “professional” property investor who thinks he knows what he’s doing. I recently showed a house an investor had renovated to a young couple I represent as a buyer’s agent. The house was a simple 1915 Cape Cod style home. For the most part, the investor had done a fairly decent rehab job on the property. He claimed to have done all the work himself. This is a rarity.  In my experience, most people who invest in homes traditionally create their own crew to work with from project to project.  Not this guy.

Self-selling investment properties?

On top of this, he was selling the house himself.  Turns out he had listed it with a real estate agent a year earlier, and committed thecropped trends - realtypin.com deadly sin of overpricing from the get-go. So it just sat there.  No offers. No nothing.  He kept reducing the price several times.  Ultimately, after six months, in the dead of Winter, he took it off the market.  And in the Spring, he placed it on the market by himself, with a much lower, more realistic asking price.  Problem was, he was still over-priced for the market and the work he had done.  But I could tell he had boxed himself into a corner.  He was trying to price the property based on what his costs were.  Not what the market would bear.  So, basically, he was sunk.

The finer points of owning an investment property

As he showed us the house, he also proudly showed his Building Permit and investment property - building codefinal Certificate of Occupancy he received for successful completion of the project. Check…and check. At least the town felt it safe. So why didn’t I? Most times, I can forgive stupid-looking remodeling work.  This guy had redone everything. But his upstairs full bathroom offered the tiniest of a vanity, while utilizing a five foot wide shelf for….I have no idea. It was free form…unconnected to anything. Stupid. But you know, investors can be stupid and still make money on their flip projects in spite of themselves – and their lack of understanding of what buyers really want.

This guy was an idiot, however.

We went down into the basement, where he had a brand new boiler,property investment water heater and well tank and pump. All were on raised blocks. The concrete flooring was all newly done. Looked great. New solid support beams on the new concrete. Fantastic. And a huge pond of water on one side of the basement leading to nowhere.   Oh – and a lovely sump pit with new sump pump doing nothing, sitting on the other side of the basement floor… “Oh, that – probably coming from the well outside,” he volunteered. WTF????

Learning the hard way…ouch

So what does it take to be a  property investor, preferably a good one?  Well, not what this guy did.  This fool had spent easily over fifty thousand dollars on the renovation, but he allows his support beams to get drenched from some major water problem he did not choose to Hurricane Irene effects on property investingaddress? He claimed to have been doing this sort of rehab work for many years on many different projects. I don’t see how. For a few thousand dollars more, he could have installed a French drain in the basement, solving his water problems.  (A French drain is a basic interior drainage system.)  Now, any buyer’s home inspector is going to send out red alerts about what major water issue could be confounding the property surrounding the house.  Could be a high water table.  Could be a well leak.  Could be any number of things.  A French drain would by an easy solution.  Instead, he does all this work, and has trouble selling his investment property, due simply to his stupidity.

And he’s still trying to sell it…

Let this tale of woe be an example to any beginner property investor.  This particular investor may know how to do renovation work himself rental property investment strategies(and clearly, not all renovation work).  But he knows nothing about marketing a house.  Indeed, he also knows nothing about identifying what buyers in his area are truly looking for.  If he did, he’d know what to give them.  In addition, he’d know his target market, their price range, and the price his renovated house would need to sell for  – before he ever acquires the house to flip!  In so doing, he can best plan his renovation work, materials needed, and work to be done, so that he can price based on the marketplace – and not on what his overall costs end up being.  Certainly in his case, and sadly at that, he will most definitely be taking a substantial loss on all his efforts.

Beware older home rehab projects

roiAs in this example above, older, period houses usually come equipped with renovation costs that can skyrocket out of control very easily. Costs that the average property does not share, and that you may not properly account for when you crunch your numbers, and come up with your overall rehab budget. It would be sad indeed to purchase an older house at a great price, only to discover you’re sinking in red ink as your fix-up costs spiral out of control, and way beyond what you originally planned on.

Do you have the business acumen for older homes?

I have written in prior articles here about purchasing older homes, and their pitfalls.  I have noted that any property investor should “consider what an older house brings to the table: sash windows that are thin byflipping houses today’s standards, and also are quite leaky – producing many drafts, thereby increasing your heating costs. Also think about the costs of rewiring hundred-year-old electrical wires and circuits throughout the house. And how about replacing antiquated plumbing lines and fixtures as well. On the whole, your repair costs could run 25% to 50% higher on an older property than on a newer one.”  I have gone on to recommend that the best investment property search results can usually be found through investing in newer houses that need less repair work to begin with, and which will cost less to maintain in the long run.

 

photos courtesy of mistakes-kristinandcory.com, realtypin.com, sheetsdesignbuild.com, flooddamagetoronto.com, minnesotabasementrepair.com, lawofficewalterjennings.com, aspectestateagents.com, metrosdrealty.com

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Filed Under: Featured, Fixing Tagged With: invest in homes, investment properties, is buying a house a good investment, is real estate a good investment, owning an investment property, what does it take to be a property investor?

Do Asbestos Removal Yourself! And Die.

A relatively old environmental hazard…

For anyone of a certain age, like myself, memories abound of elementary school productions done on a stage laden with asbestos shingles ceiling tiles, as well as asbestos-lined drapery. Aah…the good old days…When ignorance of carcinogens was true bliss. Somewhere after my generation’s death-defying leap into the unknown world of cancer-causing agents, the federal government, in the guise of the creation of the Environmental Protection Agency (EPA), started listing asbestos as a known carcinogen. Oops.
As a real estate broker today, I am well-versed in the dangers of the many environmental hazards that buildings can pose. Among the worst are asbestos. In it’s solid state, the material remains of little danger. But once it begins to fray and flake off, becoming exposed to the air and breathable, that is when it becomes a known cancer threat.

A little background on asbestos

Asbestos is a naturally occurring mineral fiber that is found in soil and rock. Since asbestos is resistant to heat, fire, and chemicals and does not conduct electricity, it is used for a number of purposes. The fiber has long been used as a construction material in buildings for insulation and as a fire retardant. It is also found in many manufactured goods. These include prefabricated building materials such as ceiling panels, cement products and floor tiles, friction products like automobile clutches and brakes, heat resistant fabrics and packaging materials.
Asbestos was widely used between 1920 and 1989, after which the Environmental Protection Agency (EPA) began regulating materials containing asbestos. The fire retardant material can most commonly be found in buildings, but also in gas heaters, hair dryers, some clothing and automotive brakes. Walls, flooring, pipes, textured paints, insulation, fireproofing materials, pipes, electric wiring, and even chalkboards constructed between 1920 and 1989 may contain asbestos. If the building was constructed between 1920 and 1989, chances are something in the building was constructed with materials containing the material.

DIY mesothelioma?

Unfortunately, as I mentioned above, asbestos has been found to pose a serious health risk when its fibers become loose and airborne, since breathing them in can cause scarring of the tissue lining the lungs (causing mesothelioma) and even lung cancer. You can check for signs of asbestos on your own, but testing should be done by a certified professional using special equipment. If asbestos is present, hire a contractor to repair or remove the materials that contain it to ensure the safety of yourself and people using your property. Trying to do asbestos removal on your own is not only illegal, it’s really, really stupid.

A bit more about cancers linked to asbestos

There are about 4,800 asbestos-related lung cancer deaths in the United States each year. The second most diagnosed asbestos-related cancer is mesothelioma. Over 3,000 people in the U.S. are affected each year. Some other cancers that are confirmed to be caused by asbestos are ovarian cancer and laryngeal cancer. In addition, the risk of colorectal cancer, gastrointestinal cancer, kidney cancer and cancer of the esophagus are thought to increase with increased exposure to asbestos.  So, rather obviously, you’d want to avoid it like the plague.
The EPA says that those who are exposed to asbestos fibers are at a greater risk of developing lung cancer. When the fibers are inhaled, they get trapped by the lungs and stay there, causing big problems. The risk is particularly worse for smokers. As previously noted, those who are exposed to asbestos may also develop mesothelioma. It is a type of cancer that usually occurs in the thin lining of the heart, lung, chest and the abdomen. Asbestosis is another dangerous health affect that is associated with the exposure to asbestos. It is a chronic disease of the lungs that is characterized by shortness of breath and coughing and may negatively impact the respiratory function. According to the World Health Organization (WHO), in 2004, asbestos-related diseases such as lung cancer, mesothelioma and asbestosis from occupational exposure to the fibers were responsible for well over 100,000 deaths.

Signs to look for…

You can’t tell whether an item contains asbestos just by looking at it. Instead, look for warning signs that construction materials are degrading. Asbestos isn’t dangerous when it’s still in good condition, but when it starts to break down and the fibers are released in the air, it becomes toxic. Look for signs of older materials that have become worn out or damaged.
Among other things, be on the look out for disintegrating pipes, insulation, walls, tiles, vinyl flooring, stovetop pads, and other older materials that have been present in a house since its construction.  Also, look for cracks, dusty areas and spots where the material seems to be in the process of breaking down and falling apart.

The search for asbestos

You can certainly test for asbestos in a house yourself using an asbestos testing kit, available online, or at any Home Depot or Lowes stores.  They’re readily available and simple to use and obtain test results.  However, again, do not attempt to perform any asbestos abatement yourself if any is found.  I have previously written here how “one of the simplest environmental hazards to find is asbestos in the house. When checking the basement of any property, make sure you look for asbestos-covered pipes. The off-white colored asbestos is a known carcinogen, and if the asbestos is fraying, it’s certainly airborne – and an immediate danger to anyone breathing in that basement.  If you’re still not sure whether the investment property you’re scouting out has asbestos-lined pipes, a home inspector can determine it for you. Also, licensed asbestos handling companies can not only tell you if there is any asbestos in the house, but what condition it’s in as well. And they are the only ones that can legally remove and dispose of the asbestos.
It is routine for the seller to pay for the removal or containment property investing hazards(encapsulation) of the asbestos. However, if the property is a foreclosure, or a short sale, the owner may not be able to perform the remediation, and you’ll have to include the removal as another cost of purchasing the property. It’s always best to have the asbestos removed, rather than encapsulated. While encapsulation is certainly less expensive than removal, you could have an issue when it comes time to sell the property. After all, what happens if a water pipe that was encapsulated develops a leak? In that eventuality, the asbestos will have to be removed in order to get at the pipe. And most buyers will not want to deal with that possibility. So removal makes far more sense than encapsulation.”

One last reminder

Remember that if you’re going to test for asbestos using a contractor, you’ll need to use an EPA-approved contractor. They are specifically trained and licensed in handling asbestos, and in how to analyze the suspected particles, as well as filing the necessary paperwork required by the EPA. If you are going to collect the samples yourself, you’ll still have to give the samples to an EPA-certified laboratory for analysis, and give them the protective gear you wore during the collection for proper disposal. Will the fun never end?
photos courtesy of mesothelioma.com, washingtonpost.com, concreteconstruction.net, commons.wikimedia.org, 360degrees.uk.com, seattle-asbestos.com, sema.dps.mo.gov
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Filed Under: Featured, Fixing Tagged With: asbestos abatement, asbestos removal, asbestos shingles, asbestos testing kit

Property Nightmares: Spotlight On Signs Of Termites

Always prepare for the worst…

So you think you’ve located a steal of a deal in your neighborhood…Problem is, how do you know the house is not going to end up being a money pit for your investment dollars? Can you spot the hidden , and not-so-hidden dangers lurking in any property?  One property investment tipsof the most common, and most expensive problems results from termite damage.  But are you an expert at finding the signs of termite damage?  (I didn’t think so…)
Naturally you’ll be utilizing the services of a home inspector to help scope out problems with termites.  But let me give you a few beginner’s pointers in knowing how to identify signs of termite infestation. In this way, you may not need to even make a bid on a property if it is in bad shape due to termite damage.  Or, you may want to alter your original bid consideration down to a much lower figure.  In this way, you won’t waste time and money negotiating a property acquisition, only to have the deal get blown up after a home inspector locates tremendous damage done by termites.

Termites in abandoned houses

I often recommend being well prepared in the eventuality of damage investment property team - house inspector from termites – or other potential hazards not easily seen by the untrained eye.  I have noted in  prior articles here that “the property investor must be aware of these most basic of environmental hazards that lurk within any potential property deal…especially with abandoned houses. And you’ll need to plan for the potential costs of remediation if needed. Just know that these costs can be extremely expensive to take on when you’re making that seemingly wonderful “steal” of a deal on any abandoned property. And that could mean a major financial disaster for you if you don’t plan accordingly for the worst.”

Foreclosures and termites

I have also warned about the pitfalls inherent when looking to purchase foreclosed (or REO) houses.  I have noted that “while REO properties (“real estate owned” bank foreclosures) can appear on the surface to be great deals, make sure you’re aware of potential pitfalls that could mean unexpected gargantuan costs down the road. However, banks that own REO’s tend to be sticklers in the adage “caveat emptor” (buyer beware) when they place their inventory of foreclosed homes for sale on the market – and they require all offers be in “as is” condition. So you’ll be in the dark, quite literally, regarding your house inspection. When buying a foreclosed home, locating investment property - environmental concernsmake sure you get a very experienced house inspection company to go over the property in tremendous detail…you’ll have to build in a slush fund for the probability that one or more of these hazards (such as termites) are present. Crunch your offer numbers accordingly…
A good house inspection company will be able to ascertain very quickly the presence of pest infestations. Termites tend to be number one on the potential list. If evidence of past termite infestations is old and not active, and the damage to the house sills have been minimal, or repaired, there shouldn’t be a problem moving forward. But if the damage is active and extensive, calling for sill replacement, this could also pose a potential cost you didn’t expect that could run in the thousands of dollars. Be very wary when confronted with the evidence of termite damage in foreclosed homes.”

Identifying termites

According to the National Pest Management Association (NPMA), termites cost Americans more than $5 billion in damage annually. Just about every property in the U.S is at risk of having termites.  So, just how do you identify termites?  What do termites look like?  You could search for termite pictures.  However, here are some signs to look for… Be on the lookout for small flying insects – known as swarmers.  They usually fly near windows and leave behind their discarded wings. This typically occurs in the Spring. Apart from spotting termite swarmers in the Spring, another sign of termites is the damage they do to properties. Sometimes it’s easier to find the early damage signs they can create.

Areas to look in…

Consider taking a closer look at the following to locate signs of termites…these include looking at flooring, walls, ceilings, foundations, windows, doors, decking and roofing. You should notelocating investment property - environmental concerns that termites can damage laminate flooring and even skirting boards. Affected flooring may blister and sag in certain areas and checking underneath the flooring may help to uncover termite activity. You can also check if floors feel more spongy than usual.  In addition, look for unexplained cracks on internal walls. As termites consume cellulose found in timber within walls, the visible cracks could be a sign of termite activity inside. Don’t forget to search out wooden ceilings, beams and rafters in attics  – they’re just as much at risk of termite damage as wooden structures located nearer ground level. Look for cracks on ceilings and cornices too.

Foundations and other spots

By far your greatest concern should be around foundations.  The type of foundation your property is built on has a big impact on how easy it may be for termites to gain entry in search of food. Although a lot of foundations nowadays are made of concrete – and termites do not eat concrete – they are able to squeeze into any crack within these concrete fixing investment propertyblocks and from there gain access to floor joists, which are still made out of wood. Homes with crawl spaces appear to be at greater risk of damage as their foundations are still traditionally made out of wood.
In addition, don’t forget to search out windows and doors – signs of termite infestation include their becoming difficult to open, as their tunneling and eating may make the frames irregular.  Likewise, decking and wooden fence posts in your garden are at great risk of termites. Long-term damage could lead to collapse. Termite-treated wood or metal posts, can help to avoid this problem. Termites may also damage trees, leading to branches falling off.  Additionally, excess moisture in a house due to loose, broken or damp roof tiles can attract termites. Broken roof tiles are a great source of moisture, which will attract termites and allow them access further inside your home. Once inside, termites are able to maneuver through a property easily and attack and eat away at wood components in all locations.
Finally, don’t forget to search for mud tubes on exterior walls.  These tubes essentially act as protection for termites and are commonly found near the foundations of a house. Typically subterranean termite species build mud tubes, which also provides moisture. They are made up of soil and termite droppings.  Look for mud tubes on exterior or basement walls. They are easy to spot with the naked eye.
photos courtesy of pooboy.com, aceenvironmentalstl.com, thiseclecticlife.com, propertymanager.cobuzzle.com, hdoundationrepair.com
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Filed Under: Featured, Fixing Tagged With: signs of termite damage, signs of termite infestation, signs of termites, termite, termite inspection, termite pictures, termite signs, what do termites look like

Should You Hire A Handyman?

Handyman or contractor…who’s best?

investment property team - contractorLet’s face it – if you’re just getting started as a novice property investor, and you locate a potential steal of a deal that needs some degree of work, you’re probably considering whether to use a contractor or a handyman.  Naturally, you’d expect the handyman, the jack-of-all-trades fixer-upper who can repair just about anything, to come at a cheaper price than a contractor.  You may be right… Or terribly wrong by the completion of your project.  And only time will tell if you choose incorrectly, Grasshopper….

The case for the contractor

If the property you’d like to acquire is in need of a total renovation, it’spainting contractors best to work with a contractor – or at least, a carpenter to act as your right hand man in all construction and rehab decisions.   Handyman services tend to generally fall within the purview of more cosmetic repair services, like painting, light (and I emphasize the word “light”) carpentry, small plumbing repairs as well as light (there’s that word again) electrical work  – such as replacing a light fixture.

Do you need a building permit?

Any work that needs a permit – be it electrical or plumbing, for example, must be done by a licensed tradesperson.  Putting an addition onto a house needs a carpenter at the very least.  Handymen tend to work alone, and as such, larger projects are outside their scope of endeavors.  A local handyman can prove invaluable however, for small projects around your investment property.

Learn from my mistakes…

Unfortunately, I have a terrible of example of using the services of a handyman – and getting hurt financially by doing so.  I had purchased a property that needed work, was new to the area I had bought in, and had received a referral recommendation from a local real estate agent I knew in the area. Sadly, his referral proved to be an expensive mistake.

Handyman costs

Handyman prices tend to be fairly low – if you look in your local Pennysaver, for example, some may charge in the fifteen to twenty dollar an hour range for their work.  The one I hired charged twenty-five dollars an hour, and I thought he would be a steal.  He said he tenant's rightscould do multiple disciplines, including carpentry (his specialty), plumbing and electrical work.  Naturally, I thought I could save handsomely by using his services.   And since he was referred by someone I trusted, I felt I couldn’t go wrong…
I went wrong.  Horribly so.  Turned out my estimated two to three week project turned into an almost two month project, with the handyman working every day.  Simply put, he was slow, inefficient, and did extremely poor work. And I had to pay for the poor work by having him re-do bad jobs.  One fun example:  I discussed his erecting a stairwell bannister in the house, told him where I wanted it placed, and left him for the day to have at it.  I returned to find the balustrades that hold the railings had been set in about six inches from the edge of the stairwell, making the stair opening very narrow, and really, really stupid looking.  Why did he do this?  Simple. He was an idiot.  An idiot who was terrible at following the easiest of instructions.

When to pay the freight

Basically, by the end of the project, I would have been better off paying a contractor’s price and having the job done right from the start, rather than getting involved in what I thought would be a great money-saver in using the services of this particular handyman.  Oh – and one other fun fact:  once I had started with him, and work progressed at a snail’spainting contractors pace, the project became, as they say in game theory, the “prisoner’s dilemma.”
Much like the Vietnam War or holding on the telephone for a real person for customer assistance – the longer you wait, or stay in the war, or in this case, continue to use the bad handyman, the more committed you become to seeing it through to the end.   And so you continue to hold on the phone, stay in the war, or use the terrible handyman.  As each day passes, you are more and more committed to NOT firing the handyman and trying to find a replacement contractor.  And after a certain amount of time, whoever you try to replace them with is not going to be available immediately anyway…and you just want to get your project done as soon as possible, without interruption.  So you continue to use the horrible handyman.  You effectively become their prisoner.  Do not make this mistake!

Start really small

While referrals are traditionally the way to scope out the worthiness of a handyman, I would recommend only using a handyman for a tiny, tiny project for starters – regardless of how glowing his recommendations have been.  If you like his work, his attention to detail, his ability to follow your instructions and he does each job in a reasonable amount of time,  then by all means you should definitely use him again for a different, tiny, tiny project.  If you still like his work, then consider bringing him on for a medium-sized project to see exactly how he handles and manages that project.  Please do not make the mistake I made of throwing a handyman into a large project from day one…all in the effort to save money.

Handymen and property management

Most of the time, handyman services will be utilized for regular choose the best home inspectorproperty management concerns.  A leaky toilet, a light that stops working, an apartment that needs painting…All light duties.  If you are doing the property management duties yourself, certainly you can line up a handyman to perform these duties – this will certainly save you money in the long run relative to a contractor’s services.  However, as before, let the handyman gain your trust by starting them off on small projects, one at a time.  See how prompt he is, how courteous he is to your tenants, how he treats your property in general (does he do more damage by his presence than he fixes?), and also, is he intelligent enough to know how to save you money?  In addition, make sure he’s not padding his hours.  Ask him ahead of time what he feels the job will require in terms of his time, if you’re paying him by the hour.  He should have some ballpark estimates.  If not, use someone else!

Using a handyman exclusively

After using a handyman many times, and learning to trust one, youinexpensive home renovations should use him exclusively for all your properties.  You will gain an ally in the process.  And this will not only save you time and money, it will save you your sanity as well.  Also, keep in mind that if you are using the services of a property management company, you should designate what handyman they should be calling when tenants call in for repairs.  Your property manager will take their marching orders from you as to the right handyman to use to help save you money.  Of course, this will end up incrementally saving you considerable amounts in the long run, especially as you continue to acquire more investment properties.

Photos courtesy of loyallabor.net, pinonpainting.com, trashitman.com, painting-contractors.regionaldirectory.us,  propertymanagementinsider.com, ortak.com
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Filed Under: Featured, Fixing Tagged With: handyman, handyman prices, handyman service, handyman services, local handyman

Environmental Concerns Of Abandoned Properties

Abandoned property falsehoods…

When searching for abandoned properties to invest in, it can be easy to get swept away with the concept of making the great “deal.” However, as most experienced property investors already understand, this is a foolhardy approach abandoned propertiesto investing. As I have mentioned in a recent article here on the abandoned properties game, “if you’re into high-risk property investing techniques that may return higher yields than the more traditional forms of property investing, then by all means consider investing in abandoned property.” I have also said that since these are typically houses that have fallen into disarray due to owner neglect and ensuing abandonment over a lengthy period of time, they will not be on the market for sale. So your real estate agent will not be able to help you out in your searching. In fact, locating a potential money-making abandoned property will eat up much of your valuable time, since you’ll have to do all the search work yourself. However, if you happen to pass by areas with what look to be abandoned houses, then by all means try using these techniques to scope them out further to see if they can be potential cash cows.

Spotting an abandoned house

I have previously instructed here about how to spot an abandoned property, making the approach and contacting the owner of such a property. But most importantly, I have written about how novice property investors need to be vigilant when they are on the lookout for abandoned properties. I have noted how “abandoned properties, whether they be abandoned properties in CT, NY CA…you name the state…are certainly worth investigating. Just keep your laptop or pen and paper handy to write down their addresses as you pass by them when driving. It’s a good idea to take photos of these houses from the street for easierabandoned properties reference back to them later, as you cull through the most viable ones for investment. In addition, be wary of going inside any abandoned property without permission. Abandoned property law still considers it trespassing if you don’t have the express OK from the owner to go inside.”

What I did not go into detail about in prior articles here on abandoned houses, are the host of environmental concerns you need to be aware of as well. They can greatly sink the potential profitability of any new project. Consider an abandoned property as full of environmental booby traps. Here are some of the basic dangers you should be looking or when investigating acquiring any abandoned property…I’ve also written about these concerns in prior articles on environmental dangers. Here are just a few of the most important environmental issues you’ll need to check out with any abandoned property.

Tainted wells

One danger endemic to many areas is tainted wells. With so many houses still property investmentutilizing well systems for their drinking water, wells should be tested every two years for potability. It’s possible for coliform to accumulate, and your body can get used to this harmful bacteria.  Well testing would determine the level of this bacteria in the water supply. And coliform problems can be rectified with simple chlorination of the well water. Potability tests can also uncover any potential problems with fecal bacterial levels. Sometimes older septic fields built too close to the well supply could account for this problem, and would need to be addressed.

Lead paint

The majority of homes built prior to 1978 have some amount of lead paint in them. Property investors can check for lead paint themselves using a simple swab test kit, or by using a home inspector to run the test. (Swab test kits can be bought at most home or hardware stores.)

By rubbing the swab on walls, wood sills or door trim, the test will identify anylocating investment property - environmental concerns existing areas with lead paint in the house. It’s important to note that the mere existence of lead paint does not make it hazardous. This test will not determine how much lead paint a house may contain. But when paint chips off and becomes airborne, it can become a hazard. And of course, children and paint chips are an obvious concern.

The two ways of dealing with chipped lead paint in the house are encapsulation or removal. With encapsulation, the area of chipping paint is painted over and sealed with a protective paint. Removal of lead paint, on the other hand, requires a certified lead paint abatement company to strip the paint off and prevent it from becoming airborne.

Asbestos

One of the simplest environmental hazards to find is asbestos in the house. When checking the basement of any property, make sure you look for asbestos-covered pipes. The off-white colored asbestos is a known carcinogen, and if the asbestos is fraying, it’s certainly airborne – and an immediate danger to anyone breathing in that basement. If you’re still not sure whether the investment locating investment property - environmental concernsproperty you’re scouting out has asbestos-lined pipes, a home inspector can determine it for you. Also, licensed asbestos handling companies can not only tell you if there is any asbestos in the house, but what condition it’s in as well. And they are the only ones that can legally remove and dispose of the asbestos.

It is routine for the seller to pay for the removal or containment (encapsulation) of the asbestos. However, if the property is a foreclosure, or a short sale, the owner may not be able to perform the remediation, and you’ll have to include the removal as another cost of purchasing the property. It’s always best to have the asbestos removed, rather than encapsulated. While encapsulation is certainly less expensive than removal, you could have an issue when it comes time to sell the property. After all, what happens if a water pipe that was encapsulated develops a leak? In that eventuality, the asbestos will have to be removed in order to get at the pipe. And most buyers will not want to deal with that possibility. So removal makes far more sense than encapsulation.

Radon

Another potential danger facing property investors is the presence of radon gas in the house. Since radon is odorless, it can only be detected by testing for it.locating investment property - environmental concerns Like lead paint, there are radon test kits that can be purchased at local home stores to check for the presence of the gas in the house. And home inspectors routinely check for radon gas as well by placing test kits in basements for a period of two to three days to get an accurate read on radon levels.

Any hazardous levels of the gas that are detected can be abated with the aid of radon mitigation companies. To lessen any high levels of the contaminant, a technique known as “sub-slab ventilation“ is used. This solution involves placing perforated pipes under the slab foundation of a house to help vent the radon away from the property.

Underground oil tanks

Another leading concern for any investor purchasing a property is underground oil storage tanks. The risk of an oil leak due to the age of a tank poses a public health hazard due to the potential for soil and water contamination.  It’s best to check with local oil companies to see if they offer an Environmental Loss Protection insurance policy if you’re considering purchasing a house with a buried oil tank. This type of insurance customarily protects you against costs locating investment property - environmental concernsassociated with tanks that develop leaks, and their subsequent removal and soil clean up. Before issuing any policy, the insurer will run tank tests (paid by you) to determine the current tank’s status for insurability.

Many oil companies or secondary insurers use privately licensed environmental companies to perform tank tests. Some will take soil samples to be tested to look for any oil seepage; others will run tank tests to determine if the underground tank has developed any leaks.  If a test comes up negative, you may want to consider avoiding future problems (and paying for tank insurance as well), by either abandoning or removing the existing tank. Abandonment means the tank would need to be emptied, cleaned out and then filled with a special foam-like expansive material, sand or concrete, and all lines leading to the tank would be cut.

If the test is positive, the seller and the company that ran the test would need to notify the Department of Environmental Protection. Then arrangements would need to be made to have the tank and any affected soil removed. When you visit a property, look for the fuel source. If it’s oil, look for where the storage tank is located. If you can’t find it in the house, then look outside as well. If you still can’t find it, it’s probably buried. Regardless, always ask the seller if they have knowledge of any current or prior buried tanks. Many times sellers will abandon oil tanks in the ground illegally, while installing new oil tanks in their basement. If there is an abandoned oil tank on the property, or if one was removed, it must have documentation from the Department of Environmental Protection that it was properly removed or abandoned.

Be prepared

As you can see, the property investor must be aware of these most basic of environmental hazards that lurk within any potential property deal…especially with abandoned houses. And you’ll need to plan for the potential costs of remediation if needed. Just know that these costs can be extremely expensive to take on when you’re making that seemingly wonderful “steal” of a deal on any abandoned property. And that could mean a major financial disaster for you if you don’t plan accordingly for the worst.

 

photos courtesy of  barnettassociates.net, buildingmoxie.com, buzzle.com, propertymanager.com, firehow.com, doityourself.com, factoidz.com

 

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Filed Under: Featured, Fixing Tagged With: abandoned properties, abandoned properties in CT, abandoned property, abandoned property law, investing in abandoned property

The Most Cost Effective Investment Property Renovations

Beware over-improvement…

Novice property investors need to pay heed to the axiom that says you inexpensive home renovationsshould never over-improve a property relative to the neighboring houses on the same street. With this in mind, when investing in investment properties, you’ll avoid turning your investment property into a grandiose vanity fixer-upper project. Remember, you won’t be living in the rental property…it’s a business! As you search for properties to invest in, always look for the most basic fixes and repairs that can keep your overall improvement costs down.

The biggest bang for your buck

Like with home owners, there are some improvement projects that bring investment properties the most bang for the buck down the road. When renovating a rental unit, the following renovations tend to be the most cost effective rehab areas you should work on first. Remember, you’ll always want to keep these renovations to a bareinexpensive home renovations minimum – unless your neighbors have million dollar homes with high end appliances in the kitchen, for example.

Keep in mind the basic rehab areas listed below when trying to flip houses. These are the simplest ways of adding value to any rundown home. And they represent the best renovations for property investments. But always remember, you’ve got to improve to the level of the next door neighbors – and not way above them. This is the safest way to keep your renovation costs in check.

Kitchen renovations

I have written in prior articles here about remodeling investment properties. And certainly kitchen rehabs offer the highest return on your investment dollar. Just make sure not to overdo it! I’ve recommended “sanding and painting the existing cabinets, and then replacing the old appliances…If not, keep your kitchen redo budget in inexpensive home renovationsline with like homes’ kitchens. Don’t forget that new track lighting, a new sink and new faucet can really spruce things up inexpensively. Laminate countertops are OK, unless everyone else on the block has granite. Then you must spring for the granite. Avail yourself of planning and design help from local home improvement centers.”

I’ve found that Home Depot and Lowes each have excellent kitchen departments, with experienced kitchen design pros on staff. If you purchase your cabinets from them (and they have a good deal of excellent quality stock to choose from), you can avail yourself of their design services for free. Use them. It’s a very cost-effective way to skirt high design costs, especially if you’re not a kitchen design expert (and who is?).   Also keep in mind that some local hardware stores, if large enough, also offer cabinetry and free design service as well…

Bathroom rehabbing

I have also noted here in the past that you’ll want to keep things as simple as possible. I have pointed out that “if you can just change outinexpensive home renovations existing toilets, sinks and towel bars, you’re lucky. But sometimes old tile walls look terribly dated, and/or you’ve got to spring for a total gut renovation.” I have also said that you should keep material costs down by using big box stores for less expensive building and plumbing materials. When purchasing bathroom vanities and cabinets, the large chain stores offer great looking cabinetry that can look as good as designer cabinets at a fraction of the cost.

Upgrading the plumbing system

I have also written here that “if a house hasn’t had any plumbing upgrades in the past twenty years, you really need to consider changing out all lead pipes to the more recent plastic tube piping of today. While the labor cost is high, the materials cost is low. In addition, any dated plumbing fixture should be upgraded as well – from dishwashers to washing machines, and everything in between.” In so doing, you’ll avoid some major headaches down the road, as older pipers tend to leak and burst quite easily with age.

Paint jobs

It’s best to concentrate on interior painting first.   Exterior paint jobs tend to be twice as costly, and may not offer the bigger return on your painting contractorsinvestment dollar. However, if the exterior of your building makes the house look like it should be demolished, then, by all means, spend the bucks to have it done as well. With interior painting, it’s best to stick with off-white, neutral colors. This is because, the more out of the norm the color you choose, the narrower the range of buyers or renters who may like it. I have noted here that you should “also keep in mind that light equals bright. And bright is a flipper’s moneymaker. Remember too, that keeping the whole house the same shade of color keeps an evenness to the potential buyer’s eyes as they move from room to room. This makes for another positive impression on any house you’ll be flipping.”

Flooring upgrades

I have also pointed out before how “carpeting is still the cheapest way to go – but it has no “wow” factor to it. Refinishing old wood floors is a great way to go – if the existing floors are hardwood to begin with. If not, consider using some of the new engineered hardwood flooring available on the market today. Or, one can simply upgrade with the “look” of wood, using laminate hardwood flooring. This is what most buyers today expect. Naturally, if you do go with any carpeting, keep it very neutral colors – beiges or grays, to appeal the largest group of buyers.”

Developing your skill set

As you continue to acquire new properties, and gain more experience in property renovations, you’ll certainly be developing a skill set forbest investment property repairs streamlining these basic renovations outlined above. You’ll learn where to find the least expensive materials for any given project. I’ve noted before how that “with this facility, and an increased knowledge of what local stores (including big box stores like Lowes and Home Depot) offer the best deals on these materials, you’ll quickly become expert at estimating, then purchasing the most inexpensive, durable and functional materials for your rehabs. Ultimately, your capital spending budget for each investment property will be kept in check, lowering your overall carrying costs, and increasing your monthly cash flow in the process.”

Figuring your ROI of investment property

When determining your best ROI for renovations, you’ll need to divide the annual positive cash flow amount by the expected total amount you’ll be putting into the property when you buy it. This will include your down payment (or, the total amount if you’re paying all cash) roiplus all closing costs on the purchase. It will also include all your improvement costs you paid out of pocket yourself with cash. By keeping your materials costs for any rehab project down, you’ll obviously be keeping your overall cash infusion by yourself down. Once computed, this ROI is also sometimes referred to as your “cash on cash” return on the investment property. It will enable you to compare buying this particular asset with other types – whether they be another property you’re interested in, or other investment choices like REITs, stocks, bonds, etc. Of course, this simple analysis does not take into account the other benefits of property ownership, like market appreciation, tax benefits that include the ability to depreciate your asset, and the overall barrier against inflation that property usually confers on investors.

 

Photos courtesy of profitindetroithomes.wordpress.com, ortak.com, propertymanagerpsg.com, consumerinformation.ca, indigo-construction.net, bandspainting.com, aspectestateagents.com.au

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Filed Under: Featured, Fixing Tagged With: best renovations for property investments, best roi for renovations, investing in investment properties, investment property renovations, renovating a rental unit, roi for renovations, roi of investment property

Inexpensive Fixes For Your Investment Property

Making your investment property more valuable

How desirable is your rental property? Have you recently taken an outsider’s fixing investment propertyhonest look at it, the way a prospective new tenant does? It’s imperative you take periodic assessments of each investment property you own to see if you continue to offer a quality product to your potential “buyers” – your tenants. The key here is “honest.” Sometimes it’s best to look at other similar rental buildings in your neighborhood and see how they stack up against yours. Especially the ones that you find truly appealing from the curb. With a thorough overview of the rental housing stock in your neighborhood, you’ll be better able to evaluate your own rental investments more honestly.

The honest assessment

As you look at your competitors’ properties and compare them with yours, ask yourself what they have that your buildings do not. Are their walkways in excellent shape? Or are there many chips and cracks, making it unsafe forfixing investment property tenants? Is their landscaping up to snuff? Are there lots of neat plantings surrounding the building, making the entire property appear like a great place to live? Would you feel comfortable living there? Are there ripped awnings or rotted wood soffits or fascia boards that make the building look unattractive? (And more importantly, convey the feeling that there is plenty wrong on the inside as well!) These are the types of questions an honest assessment will yield about your own properties.

Upgrade, and the best tenants will find you…

Armed with this knowledge and honest assessment results, you should now fixing investment propertybegin to apply basic, inexpensive fixes to your properties to make them more attractive to tenants. This in turn will make your buildings more valuable, since you’ll be able to charge market rents for your units once you’ve made your upgrades. Consider making some of these relatively inexpensive fixes to upgrade and maintain your property. Once completed, they will allow you to find the best tenants for your properties. This will help keep turnover and vacancy rates low, as well as help you to obtain the highest possible market rents for your units.

Fix maintenance items

Get a handyman to make simple maintenance repairs on your building on a regular basis. Broken hinges, or doors that stick, glass windows that need replacing due to cracks, burned out exterior bulbs – these are all simple fixes a handyman can take care of, amongst many other items.  Don’t forget torn screens and ripped awnings among the myriad of small items that should be on the regular inspection checklist.  Develop this regular inspection checklist if you haven’t already, then have at it! Your current tenants will appreciate your attention to the small details of daily living.  And happy tenants will mean good-paying tenants.

Landscaping

Be sure to address the overall curb appeal of your properties. Each one should have its own unique identity. Paying for the services of a landscaper with vision (who should also be part of your overall team of property advisors/workers) isfixing investment property very important. Let their professional eyes determine a unified look for the front of your property. Give them a budget to work within – and let them work their magic. They know best what shrubs will work for your area, for every season. Their eyes know proper color combinations – and when certain plants will flower at different times of year. Use their expertise. Most property investors I know certainly lack this type of knowledge, unless they just happen to be garden experts themselves – a rarity. Your landscaper will know where to get the best discounted prices on shrubs, trees and plantings. Use them to take advantage of these prices.

Walkways and driveways

Next to landscaping, having an appealing walkway up to your building (as well as around it in many instances) is imperative. It not only will look good , but it will make it more difficult for your tenants to have little accidents – that can turn into big headache lawsuits for you. Slip and fall lawsuits against landlords is a major type of tenant-landlord issue…make sure you head them off at the pass by maintaining your walkways – especially if you’re in a cold weather climate. Every Spring, do that maintenance checklist assessment for cracks and chips in your walkways. Also consider resurfacing warn or uneven driveways as well at that time.  Too many property investors have very litigious tenants, and those slip and fall lawsuits are too easy when walkways and driveways remain unattended – and dangerous.

Painting

Most property investors are used to having a painter come in and repaint the fixing investment propertyinterior of a unit after a tenant finishes their lease. This is especially true with tenants who have done a lot of “wear and tear” on their individual unit. But it is also important to periodically review the look of the exterior paint job on your investment property as well. Having an experienced pro painter as part of your crew for fix-up work on all your buildings is essential. They will offer you the best prices, especially with a large exterior job. Make sure they offer you a warranty on their work for a period of time (from peeling), and you should be able to have a good paint job last for many years.

Why these inexpensive fixes are crucial

Follow these simple fixes and maintenance items, and your investment properties should do more than retain their value.  They will optimize theirfixing investment property current market valuations by appealing to the large segment of good tenants available in your area.  With the addition of good tenants over bad ones, you’ll find less turnover, a much greater rate of rent paid on time, as well as a decrease in your vacancy rate.  In addition, you’ll stay away from deadbeats that could place you in the court system when it’s time to try to have them evicted.  It all starts with maintaining each one of your properties.  In this way you will increase your overall cash flow per building, as well as maximize each one’s inherent value.

photos courtesy of houstonmortgagetexas.com, hdoundationrepair.com, lawofficewalterjennings.com, tenantscreeningblog.com, ortak.com, zillow.com

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The Art Of The House Flip

How to start flipping houses

Forget the concept of the easy man’s way to riches is through flipping a house. The first of my house flipping tips is to realize that it’s going to house fliptake a whole lot of work – especially research – to be able to make any profit when house flipping. You should begin by knowing every fixer-upper that is on the market in your local area that you plan to do your property investing. That means not simply combing through Zillow or Trulia for all available houses on the market in your area. It means you must actually tour each and every one that is a viable candidate for your house flip dollars. Make sure you work with one local real estate agent exclusively. They can greatly aid you in setting up automatic searches on their local Multiple Listing Services (MLS) that will generate possible investment flips daily for you to explore.

Serious business

While many property investors approach this casually, you should take it quite seriously. Pick a day of the week to be able to tour all the houses that just came on the market that week, that are in dire need offlip houses repair. It is these fixer-uppers, where you can invest renovation dollars to earn you profits that you’ll need to zero in on. If possible, and your work schedule allows it, be able to visit immediately new additions to the market that represent tremendous profit potential. Either they are undervalued, or need work that is modest, but will yield high returns for your investment money. Naturally, you also need to do your homework on what similar properties to the house you’re considering flipping are selling for of late (within the last 6 to 12 months only). This is known as knowing the “comps,” or comparable properties. As before, use your real estate agent to help guide you in your research here.

Flipping houses with no money down

As I mentioned above, trying to flip a house with no money down will require even more of your time to locate the truly desperate properties on the market that are ripe for flip housesflipping. You may find, at best, ten percent of all fixer-uppers where the seller is offering some amount of owner-financing. But usually, they will also require a hefty down payment from you. It is incredibly rare to find a seller who throws all caution to the wind, and offers 100% seller-financing. That’s just plain stupid. In essence, you’ll need a great deal of luck to be in an area where you’ll find such a seller. And even if you do find him, there’s still the renovation costs that will need to be financed. You might be able to get a home improvement loan to do so – but just be aware that flipping houses with no money can lead to financial ruin very quickly, should you make even the slightest error in calculating the work to be done and/or the returns expected on your property, once you place it back on the market post-renovation.

Recent trends

Also, be aware of recent trends in the house flipping business. According to the latest article “Flipping Trends” (by Matt Lemmon inflip houses ZBuyerconnect.com, 8/14/15), the author notes that a story “from CNBC points out that latter-day flippers have a tougher time getting loans than they did eight or ten years ago, when banks gave them out like candy. Furthermore, the gradual clearing of low-priced, underpriced and foreclosed homes on the market mean investors wanting to flip – who can’t pay cash – are needing more cash to do it.”

Greater profits today

The author goes on to make the point that in today’s house flipping world, with fewer smaller players in the marketplace due to the tighter money situation from banks and these tougher lending policies, the flip housesaverage flip profit has been on the rise. He notes that “home flips made up just 4.5 percent of sales in the second quarter of this year, according to RealtyTrac, down from 4.9 percent a year ago. Flipping returns, however, the gross return on investment, increased to nearly 36 percent, up from 24 percent one year ago. Further, the amount of work going into flips is going up, as well. Smaller, lower-priced homes are seeing negative returns, while the more desirable flipped homes on the market needed far more work than most homes did during flipping’s heyday. The sweet spot, the article says, was for homes purchased at $100,000-$200,000, which returned an average of 44 percent.”

His main point? He sums it up succinctly, saying that “rules for successful flipping haven’t changed: Investors must know their local market. They need to buy right (i.e., low), price rehab costs conservatively and correctly, and choose the right comps in order to accurately predict exit timing and price.” In other words, do your homework – or you’ll end up making a bad buy.

 

photos courtesy of fixandflipnetwork.com,  barnettassociates.net, cbsnews.com, home.howstuffworks.com, sandiegohomebuys.net

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Filed Under: Featured, Fixing Tagged With: flipping a house, flipping houses with no money, house flip, house flipping tips, how to start flipping houses

Basics To Consider When Buying A Fixer Upper

What are fixer uppers?

I get asked for a fixer upper meaning all the time, and it’s really quite simple: any property that requires some amount of renovation, beyond cosmetic work buying a fixer upper(read: painting). Whether it’s an old kitchen or baths that need to be brought into this decade, or an entire whole-house gutting down to the wall studs with complete rehabbing of new electrical and plumbing as starters, fixer upper homes for sale can represent a tremendous opportunity for any investor. You can pick up some cheap fixer uppers that, once you’ve completed renovation, can earn you a tidy profit. Fixer upper houses come in all shapes and sizes, but they all have the same major component: they are waiting for some entrepreneurial person to come along, see the vision in what they can be transformed into, and know where to invest rehab dollars wisely for maximum re-sale value when the house is ultimately flipped.

The power of “no”

In my view, the most important aspect of buying a fixer upper is the ability to say “no.” You can never get too emotionally attached to your vision of what a house can be transformed into – and sold for a profit – if you don’t properly buying a fixer uppercrunch your numbers, and stick within your limits. I have seen too many property investors who make the mistake of “falling in love” with a potential flip, only to slowly keep edging their counter-offers up, beyond what they originally felt was their top limit for what they would pay for the property. This is a rookie mistake. Don’t be blind to the emotional pull of it – remember – it’s not your home we’re talking about…it’s a simple business decision. And if it’s not right financially, then you move on to the next best alternative property available to make an offer on.

An example of restraint

I recently showed a property that is in need of almost a total gutting – but it’s a historical house with a rich history, and a rich price tag for renovating as well. buying a fixer upperMy buyer, who’s been property investing for a long time, made an offer on it after crunching his numbers. He reasonably estimated the fix up costs, already had his team assembled for renovation, and had researched what the property could fetch upon resale, all fixed up. After his initial lowball offer (about half of the asking price) was rejected without a counter-offer, I recommended he counter with his “highest and best” offer for the property. He did so, and he came up only a small amount in price in so doing. This offer was rejected outright as well. We asked for a “come-up-to” price from the seller, but the seller would not provide one. So my buyer simply walked away from the deal…

Next…

In property investing parlance, this is known as “Next!” And he went looking for something else that would be a money-maker for him.  However, he did one verybuying a fixer upper smart thing before saying goodbye to this negotiation. He left the door open. He had me tell the seller that his offer would remain on the table, allowing for the seller to come back to him somewhere in the future, should the seller be unable to sell the property at the price he wanted. Very, very smart maneuver by my buyer, the seasoned pro. You just never know when a “no” can potentially turn into a “yes” by a seller.

Heed these basic rules

So when you’re searching for fixer upper houses to purchase, be sure to heed buying a fixer upperthese basic rules for flipping investment properties. Never get emotionally involved in the decision-making process. Always crunch your numbers – then double check them until you feel totally sure of your financial constraints, as well as what you feel your profit will be on the investment. And last, always stick to your final number when making an offer – and don’t deviate upwards, regardless of the temptation to finish the deal.  Remember, there’s always the rule of “next” – and you should move on to the next available property to make an offer on, rather than go in over your head on a potentially bad deal.

 

photos courtesy of  profitindetroithomes.wordpress.co, stiles-law.com, consumerinformation.ca, propertymanagerpsg.com, zillow.com

 

 

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Filed Under: Featured, Fixing Tagged With: buying a fixer upper, cheap fixer uppers, fixer upper homes for sale, fixer upper houses, fixer upper meaning, fixer-upper, fixer-uppers

Got Your Property Inspection Checklist?

The investment property inspection process…

Any reputable property inspector you hire to scope out all the problems (and potential problems) with your anticipated investment property purchase will choose the best home inspectorutilize a set investment property checklist when he goes through the property. Most house inspectors like to start on the outside around the foundation, and then check out the building’s exterior walls up to the roof, the roof and chimney condition, then the walkways, steps and any surrounding retaining walls. As they go around the outside, and then later the inside of the property, they are taking notes on a standard property inspection checklist, as well as taking copious photos of every item on the checklist, regardless of the condition. They will utilize these notes and photos later, by incorporating them into a complete property inspection written report that will be sent to you, the potential buyer who has hired them. You will be the sole owner of this report, and only you can allow it to be disseminated to any other party.

What to look for in an investment property

The property inspector will next go over with you what is or is not problematic ininvestment property advice the building, noting all defects in the property. They usually offer advice on what can be done to repair them these defects, along with cost estimates to correct them. Once inside the building, key items on their investment property checklist will include all the mechanical systems: plumbing, electrical, heating and cooling. And they will test and evaluate the status and operational ability of each system, offering their views on the current usefulness of each system. They will also note the approximate age of each system, and the potential useful life left for that system.

Buying a house checklist

investment property team - house inspectorMost property inspectors prefer you accompany them as they wend their way through their house inspection checklist. The good ones enjoy instructing you about the workings of all the mechanical systems as they go from one to the other. In the process you get to learn first-hand about the operational abilities of the guts of your building-to-be. Some engineers prefer to walk through a house taking their notes without interruption. Their written reports will detail every problem with the house. It’s best to go over the written report with them to figure out just how important each defect can be, as well as the potential cost to repair each item.

Are you really listening to your inspector?

Here’s another key issue to consider. Make sure you really listen to your property inspector. If they point out a potential problem, don’t blow it up into something extraordinary (and extremely expensive to repair in the future). choose the best home inspectorCommunicate any fears you may have with your inspector. If not, you may do something really stupid: you may imagine a worst-case scenario when a large problem simply doesn’t exist. I have seen property inspectors point out a potential problem, only to have the buyer take the concept and run with it – to planet Zargon. And the buyer will convince himself the whole property will definitely be a money pit, and he’ll walk away from the deal, passing up a perfectly fine property with excellent cash flow.

So try not to be so reactionary when your property inspection is being done. Make sure you talk freely with your property inspector, and are sure you are being heard, as well as ensure you are hearing everything he is saying. If you don’t, any negative thoughts and emotions could adversely color your decision to move forward with your project.   And it could mean passing up on a great money-maker of a property in the process.

 

photos courtesy of homeinspectors.com, bestlongislandhomeinspectors.com, insurancequotes.com

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