Value components of a rental property Part 2

The automotive dealership down the street from you has offered certified cars for many years. Is it a warranty or guarantee? No, it is a buyer assurance program. It provides a potential buyer a level of comfort that someone has extensively inspected the vehicle.

When buying a real estate asset a property inspector is sometimes called upon to determine the physical condition of the property. And that is all well and fine but "Yep, there an air conditioner unit, Yep it turns on, Yep it's getting cooler." may not be good enough. Generally speaking, the first five years in an investment may make or break profitability. So rather than an inspection that primarily relies on current condition a more profit assured approach of a serviceable life inpection may be more appealing.

We call that approach the 5 year serviceable life inspection. Each major component or system is identified and then a qualified inspector is employed to assess its potential serviceable life cycle. We have a benchmark of a 5 year serviceable life. Now do we guarantee the components for 5 years? No. A perfect example would be carpet. A difficult tenant may wear through a carpet in one year. However, at the time of inspection the carpet was in new or nearly new condition.

If you would like a free copy of our inspection form contact me on Bigger Pockets.