I am buying my first investment property and it's a HUD home. The inspection states that plumbing was an issue: "the plumbing lines would not hold pressure indicating a leak or leaks."
The bank will not allow me to turn on the water. We are getting an inspection but what else can we do to ensure the property is worth buying. Now my lender is refusing to provide financing because "the house is not liveable."
This has turned out to be more work than I expected. Anyone have experience with this?
It's very common for the plumbing to fail in the HUD PCR. Often it can be something as simple as a leaky faucet. Have you considered using hard money for purchase and rehab and then refinancing out?
Robert thanks for the reply! We have considered paying cash for this property and refinancing but am afraid of making a mistake (since this is my first investment). Just don't want the plumbing issue to become a huge problem. The property is a half duplex, the other side sold for $165k in may of this year. We bought it for $142k.
This is a very common issue on Hud home purchases. Typically, the appraiser for your lender is going to want all the utilities on in order to do the appraisal. Ask your lender if they have a "work around"
For the inspection, a pressure test can be done with an air compressor to isolate the problem.