What to look for in a property that is need of full renovation?

Question

Hi BP community,

I was wondering if anyone could advise me on how critical is it for a property to be inspected prior to closing that requires complete renovation regardless (the property is a complete shell and currently not even close to living condition). I plan to do a walk through with my GC to get an approximate quote on how much my renovation would cost however I was wondering if I needed to bring in a structural engineer to look for structural issues ? Would it be better hiring a structural engineer to inspect the property for structural issues before putting an offer?

Type of property - Brick row home property in the Philadelphia area.

Kevin M. · Answer

@Ahmed Elias the structural component would be the only major concern. Investors that work with us have been burned buying a shell that is later determined to have structural defects and cannot be rehabbed.

Also make sure to do your due diligence on zoning, L&I violations, title, etc.

Damaso Bautista · Answer

@Ahmed Elias

Before hiring anyone, I would first make an appointment with the planning department in the jurisdiction the property is in.

I would make sure the planning department, building department, and zoning department will all sign off on your plan.

Once this is done you will have a clear idea of what is going to be expected of you to get your place rebuilt and running.

After this you can then plan and start speaking to engineers, general contractors and such.

Doing this prior will be all for loss of the local government regulators say you can't do it.

Just something for you to consider.

Ahmed Elias · Answer

@Kevin M. Thanks for the tip. I think I might be doing that. Any idea how much it generally costs to have a structural engineer look at a property in South Phili?