Mold - How serious/expensive is it?

Rehabbing, Fix and Flip, Rental Properties
1

I see a lot of properties that have mold very cheap through HUD (open to all bidders). How serious is a mold problem and how expensive is it to deal with? I’m curious in hearing from some people that have dealt with it in the past.

2

Because the government is very much in the business of protecting themselves, there is no way of knowing how big a deal a single property’s mold problem is without LOOKING…when you looked at the properties, how bad did the mold seem to you?

Some mold needs a bucket of water with some bleach in it. Take the solution (wear rubber gloves) and wipe the affected areas down. Rinse. Some mold problems require professional remediation. Regarless of the level of the mold, if the government’s inspector finds evidence of mold, they are going to disclose to CYA…

Mold is caused by moisture, so it will come back if you don’t find/repair the cause of the moisture. Here in Louisiana, it is a constant problem especially if the property is not properly cooled/ventilated…in this case it is caused by the excessive/opressive humidity.

So, to answer your question: It depends.

Keith

3

Thanks Keith. How expensive is professional remediation? Properties are in Michigan. There was some neglect in their maintenance so water was allowed in through leaks that have been fixed. I’m pretty confident that if the property is maintained (no leaks) then there won’t be future mold problems.

4

Depends on the extent of the mold and any ensuing damage…could be a few hundred or several thousand. Are you in Michigan, too?

Keith

5

I grew up there and I have family there to help me out. It’s a better market for what I want to do as far as investing. I travel back there a few times a year.

My dad’s a licensed builder but has never built homes full-time. He’s retired from GM. He’s better versed in new construction because that’s what he’s done in the past. He built several homes for us while I was growing up. I have an uncle that does commercial construction there as well. I’d be dumb to not take advantage of the built in network there.

6

IMO, somebody needs to look at the properties with a remediation specialist and get an estimate…that’s what I’d do if I weren’t physically there to look for myself.

Keith

7

I can agree with that. I’m going there next week so I can check some of the potential properties out 1st hand. I’m not sure I’d even trust my judgement of it though. I’d want to get a remediation specialist to look at it and provide an estimate. At least until I got more experience looking at them and seeing how much they are to remediate. It can be an expensive oops.

8

I would add, many companies qualified to assess the problem,( this requires licensure in many states), do not come out for a “free estimate” rather it is like an engineer who comes out and assesses the problem, with a hefty fee attached to that assessment.