Hello Bigger Pockets Family.
I am currently in contract on my very first OOS SFR deal. I am super anxious and excited. The house is being sold AS-IS. I understand AS-IS meaning the seller will not make any repairs.
I just received the Home Inspection Report and I am not a contractor or expert, but I am a little concerned about it. In my eyes the house needs quite a bit of work, mainly cosmetic, but with a few concerns regarding electrical, plumbing, and fuel tank.
Here is the house:
From the interior pictures I KNOW it will need paint. I was weighing the options financially to fly out there with my dad and paint it or have a contractor do it, however, now it needs much more work to be rent ready.
1. Bathtub: Very slow draining
2. Bathroom: Hole in drywall under sink (not leaking) and hole next to bathtub
3. Master Toilet: Did not flush properly
4. Doors: 4-5 Doors did not open/close properly, they look fairly old.
5. Kitchen Sink: Faucet leaking at base
6. Garbage Disposal Removed: Wires under sink are exposed
7. Electrical System: Meter Base is undersized compared with electrical panel
8. A/C & Water Heater: Functioning, but past designed service life.
9: Buried Fuel Tank: Signs of possible buried fuel tank.....?
Here is the Home Inspection Report
Scroll down to page 42 for Summary Report
Am I in over my head on this one? I estimated at least $5000 in repairs, but now it seems much more.
I don't think you're in over your head. The only thing that concerns me on the list is items 7, 8 and 9. Those are expenses issues IF YOU HAVE a problem. I see the bathroom(s) don't have GFCI outlets. I would add more electrical and plumbing work into the budget.
IDEM doesn't regulate heat fuel tanks for residential use if it's small. That shouldn't be an issue unless it's leaking. I would cut that pipe below grade, cap it, and cover it with grass.
@Jason Martinez As-is does typically mean that the seller will not make any repairs. However, it does not mean that you cannot renegotiate the price based on the amount you think it will cost to repair the items that were brought to light by the inspection. I think the big ?? here is the Fuel tank. $5k might be low considering the electrical and plumbing work. You might want to see if you can get a few contractors out to take a look and bid repairs. The things that are past life just mean that you should be prepared to replace if they fail. A/C systems are not cheap trust my I just spent 10k replacing the one for my primary residence but that is what you have to do in Florida (A/C is life).
@Jaron Walling Thank you for your input. In the "Disclosures" the seller did check mark that the plumbing is "Not Defective" even though the toilet and bathtub did have some issues. Maybe I can negotiate here. I will contact contractors to place bids to run more numbers.
@Tyler Gibson Thank you as well. I will be definitely contacting contractors to get bids and truly see the repair costs. Looks like I am just getting too "emotional" for my first purchase and didn't expect as many needed repairs. Wow that's quite the HVAC expense...