I get my potential rehab homes from wholesalers and I can do a walk through before tying it up with a deposit (usually 5k). I work in a very competitive market (Tampa, FL) so I can’t usually put any contingencies other than a lien contingency on getting my deposit back. I can spot the standard cosmetic repairs like kitchen/bath needs upgrades, needs paint, flooring, old shingles need replacing, etc and I’m pretty confident in my ability to determine ARV based on comps. My biggest concern is there is a “hidden” major repair cost.
What are the standard things you look for on a walk through? What are the major repairs costs to look out for (hidden and visible)? Thanks
Foundations (cellar, pier-and-beam, or slab) problems
Air conditioning problems
Major electrical problems
Problems with large driveways
Major fence problems
It’s hard to find major hidden problems if the power is off and the house is winterized.
For possible foundation problems I usually check for cracks in the wall especially around windows and doors. The doors should be square with frame and easy to open and close. Sometimes it’s obious the floor is not level.
I look for stains on the ceiling and sometimes is easy to guestimate the age of the roof by the condition of the shingles and flashing.
A/C and furnace…turn it on if your lucky and the home has power. Look at the installation/model stickers, they should have dates. If you can’t find a sticker, you most likely may have a very old unit.
Most stat tests only cost around $60 (in my area). A re-route will go into thousands.
Woodrot may indicate Termites.
The list goes on…
If the home is listed, request a sellers disclosure notice.
Inspections during option period!
However,…there can also be problems found in schedule “A” of title commitment.