Investor · Sevierville, TN · Member since 2015 · 121 posts · 674 votes
I'm in talks to purchase a 60 unit property composed of fifty 2 bedroom 1 baths, six 3 beds 2 baths, and 4 single bed/bath. I've called several companies for quotes, so far the only one I've gotten back was $9,500. The property is around the Knoxville TN market.
For a 60 unit property inspection, does this price sound "normal"?
@Abraham Anderson, how are you going to manage it? A good third party management company can do it for you, and if they end up managing the property for you than there's typically no charge. While they are there they will also do a full lease and file audit, which is another key piece of your inspections. To supplement the management company, I will also have my contractors onsite to crawl all over (and under) the place!
On a side note, make sure you or one of your representatives goes inside EVERY unit.
Typically, if you don't end up buying the property the fee is $50/unit, give or take. $9,500 sounds really high to me.
Also, @Brent Shryock is correct - the lender will do a PCA and charge you for it. However this is NOT to be used as your due diligence, but only as a supplement to it.
Have you tried First Choice Home Inspection? They get awesome reviews on Angie's List and my clients frequently use them. Check out their website www.my-inspector.com/
This is only through what I have seen from my borrowers, not personal experience. I have seen my borrowers pay anywhere from anywhere from $50-$125 a unit for a due diligence inspection depending on the scope of the work.
Also, if you are planning on financing the property the lender is going to require a PCA report during the final underwriting. On a property this size the cost of a PCA will be most likely around $3500-$4000.
Have you tried First Choice Home Inspection? They get awesome reviews on Angie's List and my clients frequently use them. Check out their website www.my-inspector.com/
I will call them tomorrow. Thank you!
@Brent Shryock
PCA report, got it. I will verify everything my bank will require & then begin gathering quotes.
Remember, any lender will call for THEIR inspection; you get to eat it. This is exactly like their appraisal :sigh: Sometimes we're all victims of the system.
@Abraham Anderson, how are you going to manage it? A good third party management company can do it for you, and if they end up managing the property for you than there's typically no charge. While they are there they will also do a full lease and file audit, which is another key piece of your inspections. To supplement the management company, I will also have my contractors onsite to crawl all over (and under) the place!
On a side note, make sure you or one of your representatives goes inside EVERY unit.
Typically, if you don't end up buying the property the fee is $50/unit, give or take. $9,500 sounds really high to me.
Also, @Brent Shryock is correct - the lender will do a PCA and charge you for it. However this is NOT to be used as your due diligence, but only as a supplement to it.