Investor · Fort Wayne, IN · Member since 2016 · 108 posts · 24 votes
I have an accepted offer on a 10plex and am debating on if I need a home inspection. It will be a bit over $100/unit. It's not a ton of money however I have never gotten one on a rental and typically they don't stand even if something is found later. I was hoping to get others take on this. This does include radon and termite inspections.
To add a bit of info there is no gas for the property as the heat is radiant ceiling heat. Thank you for your time.
Rental Property Investor · Austin, TX · Member since 2016 · 1k+ posts · 1k+ votes
9y
@Adam Beckstetdt You may want to consider a sewer inspection as well. I'm am comfortable enough with my own abilities to skip home inspections but I will often still pay someone to send a camera down the sewer line. Failed sewer lines can be huge money to fix. Lots of 100+ year old housing stock and even older infrastructure here so it's a common problem.
Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
9y
Do you feel confident enough that you have the knowledge to do your own inspection well enough? I'm guessing the answer is no. I would say they are worth it because it gives you a better idea of the condition of the property and lets you make an educated offer.
Akron, OH · Member since 2017 · 3 posts · 13 votes
9y
I think it largely depends on what experience and background you have. Personally I am new to real estate. Without going into full detail, I currently own 2 homes. I paid for an inspection with my first house, and probably won't pay for another inspection on a single family home. However, I have done extensive (but not Full) rehab on both homes. So I have learned a Lot along the way. If I had surplus cash I would hire the best inspector in the region but financially it doesn't seem worth the cost. If you possess the knowledge to know what to look for with electrical wiring, how to inspect a roof, how to look at plumbing, determine where there are issues with the property: in depth, and if you've done multiple apartment complex deals already and seen an inspection unfold then I would say you don't need to. However, if you have no experience, no background or knowledge, then the $1,000 inspection will be a huge eye opener for you and worth every penny. You will likely find problems where you had no idea to look.
Rental Property Investor · Austin, TX · Member since 2016 · 1k+ posts · 1k+ votes
9y
@Adam Beckstetdt You may want to consider a sewer inspection as well. I'm am comfortable enough with my own abilities to skip home inspections but I will often still pay someone to send a camera down the sewer line. Failed sewer lines can be huge money to fix. Lots of 100+ year old housing stock and even older infrastructure here so it's a common problem.
Realtor · Tampa, FL · Member since 2016 · 340 posts · 248 votes
9y
Always get a home inspection. You're about to spend a ton of money, might as well make sure that what you're buying is in good shape. Even with brand new homes, you always find an issue. You're about to buy a property that was intentionally built as a rental property, and has always been a rental property. Renters typically don't take care of a property as well as an owner would.
Investor · Fort Wayne, IN · Member since 2016 · 108 posts · 24 votes
9y
Thank you so much for your comments. Overwhelmingly the consensus is to get one. I have bought 9 other properties but I did have other knowing people look at the properties. Just not actual inspectors. I hope to learn a lot from this one. Thanks
Findlay, OH · Member since 2017 · 8 posts · 4 votes
9y
ONE HUNDRED PERCENT YES. I would advise that you build a business relationship with a credible inspector who you can call on for all of your projects, as I think this is a CRITICAL portion of the process. I had to walk away from an amazing deal because of an inspection and had I not had it done, it would have cost me upwards of $10,000 to fix and that was on a single-family home. It could be much worse when you are talking about several units. My advice, do it.
Architect · Papillion, NE · Member since 2015 · 1k+ posts · 840 votes
9y
Remember this is an independent 3rd party verification. This is important when you go back to the owner for cost reduction or additional repairs its not you making crazy request. If you are doing a complete gut job then don't get one but if you are not then I would get one. At a minimum it will give you a report for what you need to fix as owner repairs.
Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
9y
@Adam Beckstetdt I'll probably get flamed for this but I have never gotten an inspection on a residential investment. Most of the time I'll be replacing everything anyway because they're full rehabs and there's nothing they could find that would make me back out
It's definitely worth to get a home inspection done. Reason being is there might be something hidden that you hadn't see where the inspector has. Further knowing the age and condition of the property can help anticipate costs down the line and how much of it may affects your returns and profits, especially for buy and hold. If you're property is over 50 years old there is a greater chance of lead based paint and/or other environmentally hazard based chemicals in the house. It's worth noting that your risk increase as your house gets older. Better than be safe than sorry.
Aurora, OR · Member since 2017 · 44 posts · 58 votes
9y
I would always recommend a careful inspection. I am currently closing on a duplex in my area and the inspector found an attic mold issue that I would not have located on my own visual check. This allowed me to negotiate a professional remediation and full re-sheath and re-roof. A few hundred dollars out of pocket to avoid a potentially large expense down the road and possible health liability for future tenants.
Investor · Saint Paul, MN · Member since 2015 · 663 posts · 512 votes
9y
Always. Even if have good knowledge of what to look for, it's helpful to have another set of eyes in case you missed something. It's just like my latest truck purchase. I brought the 2012 Silverado to a mechanic before I bought and found it had large holes in the truck bed from a 5th wheel attachment. Plus they found leaks on hose attachments the dealer tried to wash away.
Rental Property Investor · Baton Rouge, LA · Member since 2017 · 78 posts · 26 votes
9y
I'd recommend that you just get it done. You don't want something to come back and bite you in the but that could have been prevented only if you had known.
Marshfield, MA · Member since 2016 · 25 posts · 5 votes
9y
Our last two (2) acquisitions weren't inspected in the tradition of hiring a "home inspector". Instead, I scheduled my team (plumber, electrician, myself, other team members) to do a complete walkthrough for ourselves. My guys have the experience to know what it's going to take to make a property work, or not work. So far, so good. There must be someone in the BP world doing something similar! Chime in!
Real Estate Agent · Westboro, MA · Member since 2016 · 1k+ posts · 471 votes
9y
I think you should get one! You get a much better understanding of the property. It will be worth the $ you spent. You can even ask for a credit or list of repairs from the seller once you have the inspection report.
I really like that idea! Was that done within the first 10 days of your accepted offer, or was it written in as a contingency? @Steve Porcello
Investor · Front Royal, VA · Member since 2013 · 586 posts · 418 votes
9y
Yes, get the inspection no matter what. On a 10 plex it makes a ton of sense and it helps you plan for repairs. Usually, my inspector will grade things from fix immediately, to fix in a couple years. It helps plan expenses. I ALWAYS walk the property on a long-term hold with the inspector and even go in the crawlspace. I want to see what they are talking about. If it is a flip, I don't care as much as long as they are happy.
Steve, it was written in the offer in the contingency. On that, the sellers were very motivated and didn't give us a hard time, and were very helpful on their end by working with us to schedule a time and date to go through the property. It can be a process trying to coordinate a seller, their broker, myself, and all of our guys to do the walkthrough on the same day, especially on short notice. It actually happened on two different days (one guy came this day, another contractor came a few days later, etc...). I won't say it's easy, but if you have contractors in your team that you trust, then their word is worth hearing! Also, if we didn't like what we saw, then we had the ability to walk away and not go into a P&S.