So I am looking at a duplex that got water/mold damage on one side, and minor water damage (Door left open or something like that) on the other side. It is bank owned at this point. Right now the one side needs total reno from the mold/water damage.
Area is maybe a C to C+, maybe B- on a good day. They are asking 105k and it has been on the off the market for a year or more (Down from only 110K). It is in an area with all duplexes and the average prices are in the 140-160k range with rent ranging from around $750-900 ranges.
So does anyone have experience with this type of deal? Should I just walk away, or is there something here?
From a Real Estate stand point- You need more info. How many square feet per side, are your comps you are using the same bed/bath/garage? Condition of the roof? Is the condo held in an association or is it a zero lot type setup.
Things to watch out for on Condos is the HOA. Most investors will not deal with these types of properties strictly because they don't know if the HOA dues are in arrears, the status of the HOA (debunked or not) and what the HOA is responsible for (i.e 2x4 out? aka roof, Siding, Hard Exterior, Concrete etc...)
Are you renting it, flipping it, or trying to wholesale the deal out? Mold and Water Damage are very skeptical issues especially if you are thinking Black Mold. Some States require that to be professionally mitigated and if not, You can be held liable for years after you sell it if not done properly- Plus you will have to disclose you had mold and how you mitigated it.
My humble opinion- Walk away with the spread you are currently getting. If you can get it for $70k then it would most likely make more sense if you BUT Run your comps again and your repairs. Determine your True AVR value and figure 8-10% cost overruns.
Hope this helps a little bit based on the small amount of info supplied.
It depends on how much mold and what surface it's on. It it's a small, contained patch on dry wall, that can be a simple fix. If it's spread behind the walls and infiltrated the studs, you have a much different problem and I would probably walk away.
Its a 4/2 4/2 duplex, 2400 sq ft total.
The problem it is very hard to know how deep the mold goes without ripping out the dryway isn't it? Are there ways for a mold inspector to see anything besides superficial mold?