Is it a pig in lipstick?

Question

I am currently looking at a turn key property for my first deal. It was a recently flipped house, and it is calming for my wife that our first property (which is going to be a house hack) would potentially be fully renovated. However, the house is heated by an above ground oil tank. Are above ground oil tanks, or oil tanks in general, a deal breaker for anyone? Also, what techniques would you use to see if the flip was actually done properly and professionally and that corners were not cut that can be costly in the future? I would like to hear any stories in which these were factored in and how it played out, along with some suggestions on what to keep an eye out for concerning corners being cut.

Thanks!

Jake Drappi · Answer

@Kevin Zolea

Kevin - thank you for your response. I see that you’re in NJ - I would like to connect and see if we can network in the future. Let me know if you’re available for a call this week.

Will Fraser · Answer

Hi @Jake Drappi, I can't speak to oil tanks at all, but regarding due diligence on this purchase I'd recommend having a full-blown home inspection done on the property by a quality home inspector.  Additionally, I'd pull the permit record for the address (usually available with the city records office, often online) and see how officially they did the deep work.

Mike D'Arrigo · Answer

@Jake Drappi just do a search on oil heating.

Jake Drappi · Answer

@Mike D'Arrigo thank you for your response, I didn’t think about the maintenance costs that I would need to cover too. I will look into that, thanks!

Mike D'Arrigo · Answer

@Jake Drappi the oil heating could be an issue. It costs significantly more to heat with oil than it does with natural gas. That's going to be unattractive to tenants. Also, you have to consider maintenance expenses. Oil burners require regular maintenance and cleaning.

Kevin Zolea · Answer

I agree with @Will Fraser. I'm in the process of closing my first property and getting a home inspection is definitely a must-have if it's your first property. I went along to the inspection and learned a bunch on what to look out for. I didn't check the permits but wish I had done so because it came to my attention during the CO inspection that the property had a bunch of code violations.

Jake Drappi · Answer

@Will Fraser

Will - thank you for your response, I will definitely be getting an inspection on this before closing!

Is it a pig in lipstick?

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