i just found a forclosure a 3 br 2 ba house for obly 60k comps in the area range from 130k all the way up to 300k only problem is the unfinished basement walls are covered in mold going up the stairs and up the wall in the living room right beside the stairs. My question is is this a terrible deal to get involved in mold is it too big of a problems to tackle?
Your ARV range of $130-300k is far too wide of a spread. If the ARV is $130k, this will most likely be a dud.
If the ARV is $300k I'd be buying it, as long as it didn't need to be leveled and rebuilt.
It depends. You will need to fix the cause, or else it will just come right back. Might be why the home went into foreclosure or, it may be molding because it's in foreclosure and the systems are shut down. Wet basements can be very expensive to fix. Then again, it could just be a faulty or unplugged sump pump.
Some mold is toxic and each person reacts differently to mold. Mold can get in your lungs and grow there. First step is to test the mold before you step foot in the house.
thanks yes i do want to get a specialist in to give me a quote for repairs and the houses on the same street sold for around 130k to 160k but just 3 blocks away houses sold for up to 300k.
Other thing im worried about is you said the mold can get into your lungs ? My realtor didnt tell me about the mold until we were inside the house and i saw all the mold coming up from the basement we didnt go in the basement cause i had 2 year old 3 year old and newborn witg me and didnt want them in there once i saw the all the mold.
@Alexis Miller usually banks require you to sign a mold disclosure before entering if it is that bad. Good idea to keep the young ones away.
With that said, the houses on the street for $130-160k are better comps than 3 blocks away. My current house 3 blocks away in one direction is $350-400k house, and the other direction are $50-75k condos/apartments. I would really get that number correct before even worrying about getting mold remediation costs.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.