Investor · Northridge, CA · Member since 2012 · 249 posts · 73 votes
Would you buy a rental property where the house is settling (the floor is not 100% flat)??
I looked at a duplex yesterday and noticed this issue. The numbers fit my criteria (rent, ROI, cashflow...etc) but I am concerned about the floor. There seems to be no cracks in the foundation (I will get more details with a home inspection if I proceed with it). The house is in a section 8 type of neighborhood and I doubt tenants would pass on it but still....
Would you buy such a rental? Any experience with similar situations?
Your inspection will tell you if the Foundation is an issue and you can get estimates for the repair. Make it part of your conditions in any offer, then come back for concessions or walk from the deal.
If you're numbers look good it's worth it to keep walking down the road towards the deal.
The answer to your question is the answer to the question why is it uneaven.
I have whats becoming a rather rapidly growing business of private purchase inspections for investment real estate and your mentioned question is the main reason why. Optimally one would say go after the property and put in a contingency and inspect, but traditional inspections often miss issues, and I have never seen one that includes costs and suggested modes of remedy other than mine. Many say CraigsList it up and run the circus of "contractors" through and some how a parade of hacks will offer up an accurate assessment. (in all fairness I myself have advertising campaigns on C.L., yes there is a few decent Generals like myself on C.L., like 3 or 4 other than me).
As an investor time is money, and accurate data is the difference between success and failure. It is foolish to pump having the right team members for all the pieces but to have no team member for such a paramount important part as to tell you the structural integrity of the purchase, and costs associated to it.
Best advice, get a private inspections team member, ideally someone who has done many of the strategy your focusing on, and is a "house whisperer", they can catch all the things that really matter before they become a surprise money pit. Invest in them because they will save you tens of thousands, and if you buy many properties a year even hundreds of thousands because they will save you from those homes with the surprise foundation issues, sub sufficient electrical, failing roofing hidden by multiple layers, and more, in short they become free as there savings will more than cover there inspection fees.
It depends what the cause of the uneven floors are. Uneven floors are an effect of something else being out of whack.
as @James Hamling mentioned you need to have this vetted out by a qualified professional, and make sure to pick their brain when they are on site. As you do more and more you should develop an eye for tell tale signs of foundation issues yourself and eliminte problem properties before needing to go through the inspection and attorney review period.
I would buy it if the price is right. In fact, I am buying one where one of beams in the crawl space is sagging, but I am getting it at a very good price so I am okay getting the work done.
I wouldn't go out looking for these kind of houses, but as long as the numbers made sense, I would buy it.