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Orion Walker
  • Investor
  • Ukiah, CA
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Should I add a foundation to my post&pier triplex?

Orion Walker
  • Investor
  • Ukiah, CA
Posted Jul 29 2014, 12:30

Wondering if I should add a perimeter foundation to an old buy and hold triplex.

As a complete newbie a couple years ago we bought a charming old Victorian converted into a triplex and by old I mean probably built in 1800's. Instead of a perimeter foundation it is built on post & piers. Pretty common for homes in this area of that vintage. We were even able to do an FHA loan on the place because post and pier is common in the area. I know some folks wouldn't touch an old place like this with a ten foot pole, but so far it seems to be working out pretty well. We've converted the alley garage into a fourth unit and the place is above the 50% rule (which is pretty hard to do in the local market).

I've been looking to get a HELOC or cash-out refi and get rid of PMI. A local appraiser said that a perimeter foundation would add about 15k to the property value. From a little investigating I think it would cost about 15-20k to add a foundation. So, on the one hand it would add value/increase our equity perhaps enabling us to get a HELOC and eliminate PMI. On the other hand we'd probably have to borrow money to do the foundation and the house isn't currently showing damage/issues for lack of a foundation and that's 20k I'd like to be investing elsewhere. Thoughts on what we should we do?

Thanks!

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