Don't Get Burned! Spot Hidden Electrical Issues Before They Cost You!

[Roland S.]

Hidden electrical problems can sabotage your real estate investment—both financially and physically. According to the National Fire Protection Association (NFPA), faulty wiring causes 13% of all residential fires 🔥 in the U.S. annually—many preventable with the right diligence.

As a real estate investor, especially in older homes or distressed properties, knowing how to detect and address electrical issues can save you thousands 💰 and protect your liability.

🔍 Common Signs of Hidden Electrical Issues:

⚡ Flickering Lights – Not just annoying, often a sign of bad wiring or overloaded circuits.

🔥 Warm or Discolored Outlets – Can indicate loose wiring or arcing, which is a major fire risk.

🕳️ Missing or Outdated GFCIs – Properties near water (kitchens, bathrooms) need GFCIs by code.

🛠️ DIY Electrical Work – Look for mismatched outlets, open junction boxes, or old cloth wiring.

🔌 Limited Outlets – Older homes weren’t built for modern electricity demands—watch for overuse of extension cords or power strips.

📆 Panels & Breakers – Outdated panels like Federal Pacific (FPE) or Zinsco are notorious for safety failures.

🧰 Action Steps to Protect Your Investment:

1. Hire a Licensed Electrician for an Inspection – Always during due diligence, especially for flips or rentals.
2. Check Permit History – Local records can reveal if major work was done (or not).
3. Get a Thermal Inspection – These use infrared cameras to find overheating wires behind walls.
4. Budget for Rewiring – National average: $8,000–$15,000+ depending on size and scope.
5. Use Insurance to Your Advantage – A clean inspection can reduce liability and improve your coverage options.

👉 Don't let hidden wires shock your ROI—know what to look for and take action early. Austin Hard Money Lenders like Longhorn Funding can help you look out for these potential hidden issues which can save thousands in unexpected costs post-closing.