I’m looking at a fsbo but need help estimating the repairs needed to make this house rentable. The owner wants 50k but I want to offer her 50k - repairs needed to make the house rentable. I know I can get an inspection on the house, but I more or less want an estimate on things that need to be done to make it rentable, NOT every little thing that could be fixed.
I know there are companies that come out and look at a property and determine what needs to be done to sell it or rent it out, also could get an inspection (but again, this will just give me a list of things wrong with it and not just want I would need to rent it out). SOmeone else suggested getting a lender to come look at it.
Suggestions? I think an inspection would be good but I don’t want to do more work than I have to since I just want to rent it…
First you need a list of repairs from an objective source. That would be a home inspector. They have no incentive to “pad the bill” because they’re just being paid to inspect & report. Once you have the list, it should be reported with a “priority” for each item. Then you can decide what you can do yourself. The rest can be done by subcontractors. Seek referrals from your local REI or landlord Assoc. Get references. Research the Better Business Beureau, etc… Get bids for each job. Then choose who you want. This initial research may turn up a reliable contractor that you can use again & again. Good luck!
Go look at other properties in the area that are being rented. That should give you a good idea of what should be done, the quality of it and what you can leave off.
Thanks for the replies…I decided not to get the inspection because the lady just put the property out fsbo and she is not very flexible. THe house will need at least 10-20k repairs so I will wait a month or so and call back to see if she’s opened up some…
If you know the property needs work, you really do want a home inspection to discover any hidden defects that could cost you a lot more than what you can see.
As a general rule, the buyer pays for the home inspection regardless of whether the property is listed or FSBO. If you are willing to pay the seller’s asking price, then you will want to use the results of the home inspection to identify the repairs that you will want the seller to have completed prior to settlement. You make the repair list a condition of sale, or negotiate a seller concession for the repair cost.
The home inspection report might also include an estimated repair cost for the items the inspector notes. Just ask your inspector to give you an estimate with his report.
Also keep in mind that if you’re unable to determine the cost of repair on your own, you may not see some of the things an inspector might see. I’d get an inspection. There’s too many variables that can blow your budget if you’re not prepared for them.