I'm in Chattanooga, TN currently. My property inspection on a 16-plex I purchased was yesterday. Crazy how much mold is underneath all of the units, so I'm sure it's deep in the walls, etc. Also, 16 joists need to be replaced because some of the floors are caving in. Needless to say, I am very disappointed after paying $4800 for the inspection and $1300 for the trip here from CA.
My broker was saying that people don't care about mold as much as they do in California. I can't imagine buying a mold infested building though. Am I thinking differently than most the East?
Obviously I'm going to go back to the seller and renegotiate. He may not budge though. Onto the next!
This is not even an option. I would absolutely re-negotiate the price. Sometimes being an out of state investor isn't easy but you know what, better to spend $6k then tens of thousands.
I personally think Mold is blown out of proportion in most areas. I treat it the same as any other surprise found on an inspection, termites, foundation, A/C or heat issues, they all have a price to repair. Find out what that is, present to the seller and either they take care of it or they don't sell.
Once they have been notified, they are going to have to make the repairs before they can sell the property anyway, or they open themselves up to liability if they don't disclose.
I wouldn't panic over the inspection, get an idea of what the cost to repair will be and go from there. Could be an opportunity for you.
Not caring about mold and accepting it in it's current condition at the price you agreed before finding that out is two very different things. It sounds like there were some significant items found on the inspection and they either need to be addressed by the seller prior to closing or an adjustment in price to allow for you to take care of them.
I would be disappointed in the cost outlay too but I doubt the trip was a waste since hopefully you got to meet some people, get to know the area, etc... Also, be glad that you found this stuff out before you purchased the complex instead of after. Money well spent in my opinion, although it is a pretty hefty price to pay.