Home Inspection Results - NEED OPINIONS!

Home Inspection Results - NEED OPINIONS!

Investor · Rosemont, IL · Member since 2018 · 49 posts · 15 votes
Hey BP, I have a 4 unit under contract in Elgin, IL that just got inspected. I have some questions regarding the report as I would like additional opinions on how serious these issues may be and if it is worth proceeding with the deal: 1). There was seepage and required tuckpointing repairs noted in the basement (the basement is unfinished and used for storage / laundry / mechanical purposes) - is this something I should be seriously concerned when thinking long term and what might these issues point to? 2). Windows throughout building were drafty. There are at least 35 wood single pane windows which all appear to be in average condition, however there is evidence of caulking - How long do you typically budget a window to last before repairing? This concerns me due to the future cost to replace these windows. 3). 100k (estimated) BTU Boiler is 21 years old - said to be in good condition but I understand that this is fairly old for a boiler. Should I expect to have to replace it soon? 4). The heating system is not zoned, but there is evidence (one for each unit) that it was once zoned in each of the 4 units as there are 4 separate pipes and old thermostats in the units that are inaccessible. I don't understand why an owner would unzone the heat and I'm wondering how costly it would be to re-implement the zoning system. *DISCLAIMER* - this is my first deal under contract and I am the least bit handy; therefore, I am expecting a lot of the inspection results to sound scary (and they do), but I also don't want to walk into a bad deal. Any help/advice is greatly appreciated. The listing is below. Thank you!! https://www.redfin.com/IL/Elgin/532-South-St-60123/unit-3/home/16932194
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Elgin, IL · Member since 2016 · 20 posts · 7 votes
5y

Lee,

I agree with what Manuel mentioned above. In addition, it looks like you have a drain in the floor of the basement. I doubt that you have a sump pump. If you do, then there were probably big water issues in the past and that was the solution at the time. It looks like all of your downspouts from your gutters drain right next to your foundation. Try to direct the water as far away from the building as possible. 

The building is an old building (96 years), it appears that none of the windows will be a standard size. I wouldn't replace unless you have to. If this is in a historical district in Elgin, you will have a bigger problem replacing windows. In Elgin, I have seen people replace the windows with shorter windows and block out the gap with plywood. Not very good looking, but functional I guess.

You also don't have coin-op laundry. I'm sure the tenants have their friends over to do their laundry for free (at your expense). Plus, you can charge extra for garage space, weather it is to your tenant or not.

Lastly, you don't mention it in your post, but check the breaker box. If it has Federal Pacific Stab-Lok breakers, your insurance company will require that you replace everything ($$$). They are a fire hazard (don't ask me how I know this). There are/were a lot of these breakers in Elgin.

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  • Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
    5y

    @Lee Stephens

    Looks like a nice building.

    Seepage- I would look into getting it sealed up on the exterior, could be an easy fix, and make sure downspouts are good and pushing water away.

    I wouldn’t be concerned with a 21 year old boiler if it’s been maintained properly.

    Windows- if you are paying for heat, I’d replace each apartment windows when they go empty.

    What kind of rents will come from that $400k building?

  • Investor · Rosemont, IL · Member since 2018 · 49 posts · 15 votes
    5y

    @Matt M. Thanks Matt. As others stated, all of these issues seem to be very manageable. The rents should be around $1,100. The units are a good size and they’re in good shape with the addition of a parking garage, laundry and storage, so I don’t see an issue getting at least market rent with a possibility to either get above market or additional income with the stated amenities

  • Investor · Rosemont, IL · Member since 2018 · 49 posts · 15 votes
    5y

    @Brian Detlefsen Thanks Brian! I hear they are pretty hard to come by and it seems it will only get harder as they become more rare

  • Investor · Rosemont, IL · Member since 2018 · 49 posts · 15 votes
    5y

    @Jonathan Klemm thanks Jonathan! My realtor has been telling me pretty much what everyone on this thread has said which I expected; I figured it couldn’t hurt to discuss the deal and get a few additional opinions

  • Investor · Rosemont, IL · Member since 2018 · 49 posts · 15 votes
    5y

    @Travis Gulley thank you Travis!

  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    5y

    @Lee Stephens - Definitely couldn't hurt to ask!   I just wanted to make sure your agent was steering you in the right direction as well.

  • Jim BroznyPro Member
    Investor · Batavia, IL · Member since 2015 · 58 posts · 24 votes
    5y

    @Lee Stephens I own a couple properties in Elgin.  One of which is a duplex with a separate cast iron boiler for each unit.  I can attest to @Travis Gulley's comment.  The boilers are original to the building which was built in 1970 and they work just fine.  I have an excellent HVAC guy that specializes in boilers.  He told me the same thing Travis said in his comment.  Glad to share his name if you're interested.  

  • Investor · Rosemont, IL · Member since 2018 · 49 posts · 15 votes
    5y

    @Jim Brozny Thanks a ton, Jim. I’ll send you a message

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