Please help me read my first deal's home inspection report

7 Replies

Hey everyone!  I'm buying my first deal.   Just got the inspection.

Would love some help looking for anything that may be a red flag.

The house is a 3x1 single family built in 1970.  It's was recently flipped and I'm buying it for $66,000 post flip.  I should be able to get around $800 rent for it.  I'm putting 25% down and my rate on the loan is 4.5%.   It passes the 50% rule, and It's on a pretty big lot.  May have room to build something else on it later.

Here is the home inspection:

https://drive.google.com/file/d/0B9xo5LHfwd6GcnRvR...

Roof and structure look good.  The big stuff seems OK.

There are a couple minor things that stand out to me:

The hot water tank ventilation is wrong and needs adjusted, minor fix.  

Kitchen sink leaked when tested, but it's all in the pipes and just needs put together correctly.

The electrical isn't great: some ungrounded outlets and a double tap in the box.  Thoughts on this?


What else am I missing?  I've bought a few houses I've lived in, but I know I'm no expert at this stuff and would appreciate a more experienced set of eyes to glance over this for me.

Thanks y'all!

it looks like there is less then a$1000 of minor repairs Why was the water heater not on? Give the whole report to the seller and see what they will fix 

Originally posted by @Steven Picker :

it looks like there is less then a$1000 of minor repairs Why was the water heater not on? Give the whole report to the seller and see what they will fix 

I think because they had the vent installed wrong.  Part of it was slightly moving down, so it wasn't vented right?

I'll pass that on though and ask.  Thanks for the feedback Steven.  I appreciate you.

Focus on page 19 do what you can.  The form is what we used in west coast decades ago. These days all images are there from a drop box to allow users to interact with write up.  I have no clue on insulation, windows, fire alarm, CO detector, fire retardant door thickness. In our area, an inspector identify the roof life, flashing, chimney, flue etc. Attic insulation thickness(R value), window condition. Gutter maintenance. Kitchen sink leak, garbage disposal? dish washer cycling is all I can get out his penmanship. He said nothing about toilets, water damage below the home and flooring conditions. These are big ticket items.

Try to figure out the total repair and work on the important deficiencies.

Shane,

There are a few things I saw on the report that I think you should ask for seller assist so you can fix it yourself (Never ask seller to fix anything, they are trying to keep as much profit as possible, so they are inclined to do half-*** jobs) or ask for 2-3K reduction in price. I am surprised this is a flip and has these issues still. Here they are:

1. Front porch, large crack, caulk or fill. (When I bought my SFR, my insurance required to fix a crack on the steps before it gets insured, it cost me $500).

2. Main Water shut off not located on  the meter. (Why would the main water shut not be present? If there was a major water leak, how do stop the water from flowing?).

3. Panel box, 2 hot wire attached to one breaker, fire hazard. (Anything that is going to be a safety hazard or fire hazard, I feel, needs to be immediately fixed, its an investment, protect your investment).

4. Outlet above sink won't trip. (Goes back to # 3).

Originally posted by @Sam Shueh :

Focus on page 19 do what you can.  The form is what we used in west coast decades ago. These days all images are there from a drop box to allow users to interact with write up.  I have no clue on insulation, windows, fire alarm, CO detector, fire retardant door thickness. In our area, an inspector identify the roof life, flashing, chimney, flue etc. Attic insulation thickness(R value), window condition. Gutter maintenance. Kitchen sink leak, garbage disposal? dish washer cycling is all I can get out his penmanship. He said nothing about toilets, water damage below the home and flooring conditions. These are big ticket items.

Try to figure out the total repair and work on the important deficiencies.

Awesome advice Sam.  Thank you for the input. 

I was at the inspections.  Floors looked good.  The water in the basement happened while we were there.  It was bone dry.  But when we turned on the water on the kitchen sink they had not hooked it up right, the pipe was loose and water got all over the floor and ran down into the basement through the drain lol.  So it was a one time correctable event.

I'll ask about the gutters, didn't see anything on those.  Thanks again man.

Originally posted by @Brian Adzadi :

Shane,

There are a few things I saw on the report that I think you should ask for seller assist so you can fix it yourself (Never ask seller to fix anything, they are trying to keep as much profit as possible, so they are inclined to do half-*** jobs) or ask for 2-3K reduction in price. I am surprised this is a flip and has these issues still. Here they are:

1. Front porch, large crack, caulk or fill. (When I bought my SFR, my insurance required to fix a crack on the steps before it gets insured, it cost me $500).

2. Main Water shut off not located on  the meter. (Why would the main water shut not be present? If there was a major water leak, how do stop the water from flowing?).

3. Panel box, 2 hot wire attached to one breaker, fire hazard. (Anything that is going to be a safety hazard or fire hazard, I feel, needs to be immediately fixed, its an investment, protect your investment).

4. Outlet above sink won't trip. (Goes back to # 3).

 I caught this deal off market right before they finished the flip.  They were about 90% done.  They had already put in new flooring and paint and all that.  But there are still a couple things to do.  I need a door in one bedroom and appliances for the kitchen.  I'm going to have a plumber come in and check out all the pipes and toilets, caulk the bathroom.  And I got my guy that can handle the electric stuff.

Awesome actionable advice Brian.  Great stuff.  I love the advice about fixing it ourselves.  I'd thought that too.  They just want to get you to the sell, so its better to just take it on.  I think that advice will serve me well in future deals.  

Did you fill the crack with concrete?  Is that why it was so expensive?

I'll check on the main water shutoff for sure.  I think there was one in the basement if I remember correctly.

Panel box I'll fix ASAP before I put anyone in it.  Same for outlets.

Thank you so much for the input!  I appreciate it so much!

Actually I had cracks on the basement wall as well. So I had my guy do both the stairs and the basement for $500.

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