Property Repair Deal Breakers?

Question

Hello all,

When buying a property, what are some things that are absolute deal breakers in a deal? How do you know if any needed repairs would be absolutely detrimental to the long term value of the property? I'm trying to work out a deal now that needed some repairs but the seller came down about 50% on the credit for the estimated costs.

Thanks,

Thomas Shields

Bruce Woodruff · Answer

I should add that people that can do everything themselves have much less fear.

That's not always good though....sometimes you get over-confident and in over your head real quick...ooops.

Account Closed · Answer

Hey Thomas, great question—this is something I navigate often, especially when evaluating properties for long-term holds or resale.

For me, absolute deal breakers typically fall into these buckets:

1. Foundation or major structural issues – anything shifting, cracking, or sinking will eat your budget alive and scare off future buyers/tenants.

2. Environmental hazards – things like mold, asbestos, or soil contamination aren’t just expensive fixes—they’re liability magnets.

3. Unpermitted work – if major additions or electrical/plumbing work weren’t done to code, you’ll likely face legal headaches and hefty costs to rectify.

4. Neighborhood factors – no repair budget can fix declining local schools, crime rates, or undesirable zoning changes.

That said, repairs aren’t always a deal killer—it’s about weighing your exit strategy. Will the cost of repairs leave enough margin to meet your investment goals (cash flow, ARV, etc.)?

When I help clients or investors weigh deals, I focus less on the sticker shock of repair estimates and more on whether the post-repair value aligns with their long-term strategy. Sometimes the seller’s credits aren’t enough, but if the numbers still work for your goals, it could still be worth it.

If you want, I’ve got a quick checklist I use when running these numbers—happy to share! Just let me know.

Alan F. · Answer

For me there's no 1 repair that's a deal breaker, it's my responsibility to accurately estimate repairs and upgrades. I'm particularly fond of knob n tube, screw shell fuse panels, aluminum wiring, undersized underground services, galvanized plumbing and asbestos HVAC upgrades. It's a matter of accurately estimates and seller concessions.

2 good $ makers I had was a flipper screwed up and their handyman cut the PT wires in a slab while trying to add a bathroom.

There's money to be made out there.

Deferred maintenance and hack work can be lucrative

Nadeem Alamgir · Answer

Hey Thomas, deal breakers really depend on your strategy and experience, but some major red flags to watch for are foundation issues, structural damage, water intrusion, and title or zoning problems. These can get expensive fast and might hurt the property's long term value.

Walter Bowser · Answer

Foundation issues, especially if it is on a slab foundation is a deal breaker for me everytime. The resell value will never be the same on it, most buyers do not want a home with foundation issues. If you know you are going to keep the house for 30+ years as a rental might not be an issue

Dan H. · Answer

I require a discount for repairs that allow me to add double the cost of the repair in value.   If the discount with respect meets that criteria, then nothing has scared me.  I have purchased a property with a $32k foundation issue and a property with over &40k septic issue.

Why must it add double the value of the repair?  Repairs are work and have risks.  My time is valuable; I do not work for free.

I would have zero interest in work that was getting a discount of 59% of the cost.  Not only would you be working for free, but you in effect are paying to work.  In addition there is no compensation for any risk. What happens if when doing a $10k repair they find something that adds to the cost.  This is far from rare.

good luck

Thomas Shields · Answer

thanks for the comment, I appreciate it!

Theresa Harris · Answer

I think it depends on the person.  For me, anything structural for sure.  electrical, plumbing or HVAC would depend on the type of problem and the amount of effort and $ needed to fix it.

Thomas Shields · Answer

Thanks for the comment!

Bruce Woodruff · Answer

I used to actually search out distressed properties for that part of my business (as opposed to the custom home part)

I personally loved bad foundations (unless there was serious displacement on a slab), but horizontal cracks or an off-level raised foundation, no problem.

My no-no's were 1) cast-iron sewer lines (depending on the distance and terrain), 2) bad septic tank and fields (depending on same) 3) Structural issues (if severe enough)..

But having said this, if the budget was large enough, and it still pencils out as a money-maker, then you just have to decide if you want the hassle.

Property Repair Deal Breakers?

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