Help needed on Inspection Report Issues from Turnkey Provider

Help needed on Inspection Report Issues from Turnkey Provider

Investor · San Bruno, CA · Member since 2017 · 19 posts · 22 votes

Hello

I'm trying to purchase my first rehabbed rental property through Rent to retirement/RTR.

The inspection report came back and there are many issues. 

One is required safety issue, A GFCI outlet would not trip when tested. 

Other over a dozen recommended fixes:

Electrical: 

1.There was exterior wiring visible that was not in conduit

2.A GFCI outlet would not trip when tested

3.The weatherproof covering is missing on the exterior receptacle

4.An outlet box is loose from wall

5.An outlet did not register as being energized with an outlet tester or multimeter.

6.A light fixture has physical damage.

7.A light fixture was inoperative.

8.There was no power detected

Plumbing: There was no discharge tube connected to the tpr valve

Attic, Insulation & Ventilation: They were stained areas in the attic

Doors, Windows & Interior:

1.SEVERAL WOOD WINDOWS APPEAR TO BE PAINTED SHUT

Exterior:

1.An exterior door does not close or latch properly.

2.An exterior door is missing sufficient weatherstripping. This can result in energy loss and moisture intrusion.

3.There was some settling to exterior concrete. It is possible that this could become a tripping hazard.

Roof:

1.No chimney cap was observed

2.The chimney crown has cracks/deterioration. Water can freeze in between cracks in cement and lead to additional deterioration.

Other things:

The attic is full of trash, left over furnitures, the garage floor is full of left over wood chips.

Is it normal to see so many issues on the inspection report of a place just finished renovation?

How should I handle these issues with the turnkey provider? Just reach out to them and let them know? And how can I confirm these issues are addressed after? Do I need to get another inspection report done? And how do I decide which issues need to be addressed, or should they all be addressed before the property is closely? Should I negotiate with the seller to clean the place, and throw out all the trash, I have never seen a place so dirty during a showing before? 

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Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
3y

Yes. It’s normal. The house you’re living in right now would have 5-10 “problems” cited. It sounds like you have $500-$1,000 max worth of problems. You ask fir $500-$1,000 off. Of they say no, you decide if you would have tried to buy the property if it was listed for $500-$1,000 more without these problems. If so, you buy it anyway. If not, you walk away using your inspection contingency. 

Let me put it this way. If all those problems were cited on a turnover of an existing property. Many/most landlord would take in stride as being pretty good. Certainly less than one real problem like a water heater, cracked concrete, a bad appliance or roof/foundation issues. 

If this sounds like a big problem I’d suggest you hold off on getting in to landlording. You have to get in the mindset where this is like a flat tire on your car. An inconvenience you wish wasn’t happening. But no big deal the next day or anybody but you. You’ll worry about problems like this until the first time you get a call about a $5k or $10k problem. 

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  • Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes
    3y

    Hi Wenqian, I would love to connect and help out since I have had experience working with turnkey providers. Feel free to book a call on my calendar and we can connect

  • Rental Property Investor · Orange County, CA · Member since 2016 · 513 posts · 374 votes
    3y

    @Wenqian Guo

    Have you received an estimate to fix the issues from inspection? Also is the turnkey provider the seller of the property or participating in an assignment contract ?

    Hopefully you have visited the property in person and checked the neighborhoods before starting an escrow.

    You can always facetime with the provider to confirm, issues have been addressed 

    I am not sure why would you need to negotiate with the seller when you have middleman involved in the transaction. Get an estimate and ask for seller concessions if you intend to proceed with the purchase 

  • Member since 2021 · 33 posts · 7 votes
    3y
    Quote from @Wenqian Guo:

    Hello

    I'm trying to purchase my first rehabbed rental property through Rent to retirement/RTR.

    The inspection report came back and there are many issues. 

    One is required safety issue, A GFCI outlet would not trip when tested. 

    Other over a dozen recommended fixes:

    Electrical: 

    1.There was exterior wiring visible that was not in conduit

    2.A GFCI outlet would not trip when tested

    3.The weatherproof covering is missing on the exterior receptacle

    4.An outlet box is loose from wall

    5.An outlet did not register as being energized with an outlet tester or multimeter.

    6.A light fixture has physical damage.

    7.A light fixture was inoperative.

    8.There was no power detected

    Plumbing: There was no discharge tube connected to the tpr valve

    Attic, Insulation & Ventilation: They were stained areas in the attic

    Doors, Windows & Interior:

    1.SEVERAL WOOD WINDOWS APPEAR TO BE PAINTED SHUT

    Exterior:

    1.An exterior door does not close or latch properly.

    2.An exterior door is missing sufficient weatherstripping. This can result in energy loss and moisture intrusion.

    3.There was some settling to exterior concrete. It is possible that this could become a tripping hazard.

    Roof:

    1.No chimney cap was observed

    2.The chimney crown has cracks/deterioration. Water can freeze in between cracks in cement and lead to additional deterioration.

    Other things:

    The attic is full of trash, left over furnitures, the garage floor is full of left over wood chips.

    Is it normal to see so many issues on the inspection report of a place just finished renovation?

    How should I handle these issues with the turnkey provider? Just reach out to them and let them know? And how can I confirm these issues are addressed after? Do I need to get another inspection report done? And how do I decide which issues need to be addressed, or should they all be addressed before the property is closely? Should I negotiate with the seller to clean the place, and throw out all the trash, I have never seen a place so dirty during a showing before? 


  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    3y

    Yes. It’s normal. The house you’re living in right now would have 5-10 “problems” cited. It sounds like you have $500-$1,000 max worth of problems. You ask fir $500-$1,000 off. Of they say no, you decide if you would have tried to buy the property if it was listed for $500-$1,000 more without these problems. If so, you buy it anyway. If not, you walk away using your inspection contingency. 

    Let me put it this way. If all those problems were cited on a turnover of an existing property. Many/most landlord would take in stride as being pretty good. Certainly less than one real problem like a water heater, cracked concrete, a bad appliance or roof/foundation issues. 

    If this sounds like a big problem I’d suggest you hold off on getting in to landlording. You have to get in the mindset where this is like a flat tire on your car. An inconvenience you wish wasn’t happening. But no big deal the next day or anybody but you. You’ll worry about problems like this until the first time you get a call about a $5k or $10k problem. 

  • Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    3y

    @Wenqian Guo

    Not to be harsh, but why are you asking strangers on the Internet about this instead of the trusted person on your team who has significant handyman/rehab experience? If you're going to be buying assets like this, you need to know quite a bit about the kind of common problems and issues they have, or work with someone who does.

    For what it's worth, @Bill B. is basically correct here. None of the items listed are normally dealbreakers. But that statement hides an ocean of uncertainty. How old is the house? Where is it located? Do you have a general repair/maintenance provider where it is located? All these things matter a great deal.

    The thing about real estate is that it is, well, real. You're not buying a mathematical share of a corporation or a virtual slice or a business. You need to learn more about what you ARE buying, residential properties, their problems, and how they are normally maintained, creatively improved, and commonly damaged.

  • Member since 2021 · 33 posts · 7 votes
    3y

    Hi Wenqian! I have the same problem, the only difference is I have the newly-built house. Did you get help from the turnkey company (RTR)? Who should I contact first? Were all the defects got repaired or only the major ones? I'm just wondering if you get a discount from the inspector to have it inspected again after the repair. I didn't expect to get a lot of problems from the home inspection, now I'm thinking if it's worth buying the property. I'm new to this, your advised would be very much appreciated. Thank you!

  • Rental Property Investor · Austin, TX · Member since 2019 · 22 posts · 65 votes
    3y

    Hey Florencio, just responded to the email you sent me concerning this. As many others are saying here, inspections always come back with issues (even new construction), but the build team will fix what's on the report. With thousands of things being done on all builds and rehabs, things get missed or messed up. Everything will be fixed before you close, however. 

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