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Return to: Part I: Complete Home Rehab
HEATING / COOLING SYSTEMS
Heating and cooling is referred to as the air conditioning system. If the house you’re inspecting doesn’t have adequate heating and cooling, improvements could become expensive. For example, with a flat roof home in a hot climate with window unit air-conditioners, you may want to bring the house up to what a modern day home dweller expects, and you may have a problem. Where would you put new ductwork if you don’t have attic space to house and route central heat and air?
Once again, call in a pro if you need some advice. They do give free estimates.
Note that the plumbing, heating and air-conditioning guys all drive service trucks. Be on the lookout for their trucks if they are your neighbors; go say “Hello” and introduce yourself. These guys most always work on the side and that means half price, even if you have to pull a permit as a homeowner. But the savings can be substantial. So develop a network of these blue-collar geniuses. They are the guys who will transform your investment fast.
In summary, very few buyers are going to give you an extra $15,000-$20,000 in your asking price because you have replaced things that they can’t see and already take for granted as just a basic component that is buried in the structure. Also, they assume these components to be warranted against defects by you.
After all, it is mandatory in most, if not all states that you fill out a disclosure form that tells the buyer of every defect that exists or ever has, to your knowledge. So inspect the systems of your investment alternatives carefully, as they can be expensive to repair and replace, with minimum dollar return value being realized at the sale.
Along these same lines, you should also pay close attention to the following cash vacuums:
- Roofing
- Foundation
- Structural Integrity
Let’s exam each. First, quickly gage the home from its appearance.
Stand across the street from it. Now look at the bones of the structure. Does it look like a sway-backed horse, with the roof sagging in the middle? Does it have flat areas in its design that don’t allow water to be drained away quickly?
ROOFING
Water, dampness and rot are the equivalent of cancer to the human body when it concerns a structure. For example note that while shingles can be replaced, that in itself won’t necessarily hinder buying. Because you can use the old roof as a bargaining chip in negotiating the seller down to a lower price. However, if the attic reveals that the plywood has become rotted and truss members are also affected, it’s time to move on to your next potential deal. Life is too short and it might be impossible to rehab a house in 10 days, if it needs the roof ripped off and rebuilt.
Some other conditions, such as sagging eves, wavy roof surface, rotten fascia and trim pieces and insect infestations can be deal killers too, if severe.
Solution: Get into the structural members with a long, sharp, sturdy, standard flat-tip screwdriver and attempt to penetrate structural components that are made of wood. You won’t hurt anything if there are no underlying deficiencies. However, if someone has freshly painted over or patched it, that screwdriver is one heck of a lie detector. Use it.
Note that people might not necessarily cover problem areas. It may just be that termites have eaten everything but the exterior coating of the wood to conceal their activity, whatever the case probe.
There are also tile roofs, metal roofs, cedar shake roofs, hot-rolled roofing, tar and gravel roofs and always a few new high-tech roof coatings. The main concern is to check whether the decking or the roof support structure has been undermined by water, insects, rodents, poor materials, poor design or craftsmanship, a lack of fasteners, strapping, etc.
Shingles and coatings can be replaced. Just know what is underneath. Negotiate lower for needed replacement of roof coverings if you can. Focus on roofs because they protect everything else.
FOUNDATION
Next on the list of deal killers is the foundation. The same basic strategy applies. Start by standing back from the house and look at it from a distance. Does it look like the Leaning Tower of Pisa? Or are the seams coming apart? Do the windows and doors look square? Are porches, stairs and additions on firm ground as well?
Block homes can tell you very quickly if they are stressed out just by the appearance of the mortar joints. Giant unsettling cracks can and do tell a story. For example, mortar cracks may be 10-years old. But you need to investigate further.
Once again, water is a sign of trouble. With foundations, it leads to erosion, rot, mold and mildew. It washes out foundation materials and slabs will crack. It rots sill plates and walls are no longer firmly attached to a base.
If there is a crawl space, it’s time to get your coveralls on and get in there. Proceed with caution. Before entering a dark, supposedly uninhabited, infrequently entered, restrictive-to-movement area, assess the situation. Ask someone who has knowledge of the dwelling if there has been any animal activity that they know of. Be on the lookout for bees, wasps, ants, spiders, snakes, slugs, mosquitoes, rats, mice and a host of other inhabitants. Beware and be prepared. It’s can truly be another world in some cases.
If you don’t want to do crawl around on your own, hire a professional and not some Joe who says he is one. For goodness sake, use a licensed professional home inspector to protect yourself in all areas if you’re just not sure.
If you’re a trooper and you’re going in, good for you, Rambo! You’ll make it in this business because it takes faith, guts and determination. By getting into this type of situation, you’ll learn a lot more about every part of the homes you inspect.
You should have a strong flashlight, your trusty screwdriver, maybe some insect repellent and a safety observer standing at the access entry to give you piece of mind. Now you can go to the perimeter walls and inspect where the walls meet the foundation. Look for rot, misalignment, cracks, separations, water damage or any other condition that doesn’t appear normal.
While you’re down there, look at the other foundational supports, you will see pier blocks and posts, other concrete support pillars and walls, beams, joists and cross bracing, and the underside of sub-flooring. Check the condition of everything. Does it look original? Is it structurally sound? Or are there some discrepancies that need further investigation? Take a good look and smell!
Don’t leave yet. You also will want to look at all that plumbing and electrical that is there as well. Scan the perimeter. Do you see any sunlight coming in from where it shouldn’t be? That might be a hole that needs repair. This is common sense land, not computer a chip lab. You can inspect for general condition. Simply follow everything to its logical end, looking mainly at the condition of the different components.
OK, you’ve made mental and physical notes. Now dust yourself off and go inside the house if everything has checked out so far.
Continue on to: Part III: Complete Home Rehab
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