BiggerPockets

I did a walk through of an REO today and it was in decent shape, but the broker said it probably wont be able to go to anyone but a cash buyer because of MOLD!

Any ideas on how much it costs to deal with the mold problem or is it a deal breaker and I should walk away?

The smell was terrible by the way.

The place is in Garden Grove.

The BPO came in today at 345,000 and it comps out at about 360,000 so I didn't bother looking into it any further as it is not going to yield and rehabbing profits.

I didn't have my camera on me because it was a last minute decision to go see it so I don't have pictures.

Might be a good rental if you are looking for that. I don't know the rents in that area but I could find out if you like.

Is there a difference between mold and black mold?

Question, just because the broker said mold, is there any proof that anyone else did?

The BPO came in today at 345,000 and it comps out at about 360,000 so I didn't bother looking into it any further as it is not going to yield and rehabbing profits.

I didn't have my camera on me because it was a last minute decision to go see it so I don't have pictures.

Might be a good rental if you are looking for that. I don't know the rents in that area but I could find out if you like.

$345K houses make bad rentals.

Ya, you'd need to be in the $260's if there are next to no repairs required, so it seems far away from a deal.

Hello Darren and Jon;

In regards to your questions concerning ozone. Just to be clear I own a service in Michigan that kills mold and odors from properties by appying a shock treatment of ozone. Ozone is FDA opproved, EPA registered, Certified Organic, and the generators we use are UL approved. We use UV light generators that take the oxygen from the air, splits the atom and fills the property with a ozone cloud. Anywhere the air goes the ozone goes. The ozone will not penetrate the drywall, however, if you have mold between the drywall you have oxygen getting in the wall through crackes. The ozone will find the cracks and seep into the wall, killing the mold.

The ozone kills the mold, however it does not clean, the mold is turned into a powder that can be washed off the wall or vacuumed. The spores and the microtoxins are dead also. You still may have to replace the drywall if the mold has damaged the materials.

During the treatment the property must be vacate of people and animals, because the levels of ozone generated are unsafe. However, ozone turns back to oxygen in about 15 minutes. We treat the property for 24 hours to kill mold.

We save investors money because we do not remediate. The lastest attic we treated, the investor got quotes for $8000.00 to remediate, we charged $500.00.

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Hope this helps.
Denise

I realize this an older thread, but just wanted to jump in with a question in hopes that someone will weigh in.

Does anyone have experience with a cash offer Fannie Mae situation where mold was discovered during the inspection process? With FM, placing a repair dollar amount on the offer as a contingency doesn't work...I have been told that I just have to decide within 10 days whether or not I will move forward to closing. My question is if Fannie might accept a lower offer based on the increased cost to abate the mold and potentially repair any damage to the joists? Anyone have personal experience in this area?

Thanks in advance!

we just finihed up a project in long beach, Ca it was about 1300 sq ft. It had alot of mold from leaky pipes , we removed all the drywall in the entire house for about 600 bucks all new drywall installed with texture for 3,100. So it wasnt that bad , We had to re-wire the house anyway so my electrician lowered his price for me as well, worked out fine