What inspections do investor purchasers typically order?

Question

I have a contract on a single family residential property located in South Florida intended as a rental unit.  It was constructed in the 1950s.  I ordered a standard inspection and the inspection firm immediately recommended that I also order a sewer camera inspection, which essentially doubles the cost of the inspection (still less than $800).  I ordered the additional inspection. I am curious to know if others think that such an inspection is warranted and what other types of inspections investor, purchasers order.

Clifford Paul · Answer

I'm a big fan of adding a sewer inspection for any property built before 1980. However a sewer inspection should only be an additional $200 but I can only speak for my area.

Andre Taylor · Answer

I buy mult families... and that sewer lateral inspection is so necessary. I got to the point where I get my contractors out to inspect the specific areas.. like my plumber, electrician, etc.. since most of the inspection report will say talk to a licenses plumber, electrician etc. Oh one thing I am doing now is bringing in a mold specialist to test the air quality ; though you can typically smell mold... nothing like an extra test.

Patricia Steiner · Answer

I have never bought a property - nor have any of my clients - without an inspection. Having said that, the type and scope of the inspections vary greatly by property. The standard Homeowner Inspection isn't really all that great for investors. Recently, I ordered a major components only inspection ($300; large triplex on a barrier reef that is convenient to no one but tourists) and a separate foundation/pillar inspection from a foundation contractor (cost was $200). It was that second inspection that saved my clients thousands - with the cost of the replacement put back on the seller. By inspecting core components versus every light switch and appliance, a substantial savings in time and money is gained.

I do know of properties that had sewer failure due to age and that's not a cheap date. The inspection price seems high but those findings (if satisfactory) should help reduce your insurance cost.

What you know upfront is a whole lot better than what you discover later. Congrats on your new acquisition!

I do know of properties that had sewer failure due to age and that's not a cheap date.  The inspection price seems high but those findings (if satisfactory) should help reduce your insurance cost.

What you know upfront is a whole lot better than what you discover later.  Congrats on your new acquisition!

Matt M. · Answer

@Joel Zwemer

The clients I work with and myself don’t do any inspections. Houses fly off the market and cash/no inspections. These houses range from 1900-1950’s.

Other than not having a sewer camera, there’s really nothing we can’t spot with a few pairs of eyes and lots of experience. Stuff we have discovered over the years wouldn’t have been found by a home inspector anyway.

Share Ross · Answer

Hey @Joel Zwemer

All good points given. Usually... the home inspection is worth it no matter what. The biggest other issue that comes up here in South Florida is termites. Unusual to have a sewer report requested. Did your inspector give you a reason for that? Even with termites, usually only ordered if evidence of WDO's are visual.

Good luck with your purchase and hope it goes well!

Gabriel Graumann · Answer

@Joel Zwemer There are various potential issues to inspect varying by size of property, type of property, age, visible condition, construction type, location, geographical issues, and the list goes on. As both an investor and broker of 17+ years, I have personally bought properties with and without property inspections. For me it depends on what I intend to do with the property. If it's a fixer and I'm going to perform a major renovation, I don't tend to get a formal inspection. I can do this with more confidence as the son of a 40+ year GC who often looks at investment properties with me, and because I always budget for unforeseen issues. If a failed sewer line or other issue makes or breaks a deal, then it likely isn't a deal to begin with as the margins are too small. At least that's how I look at deals. Nothing wrong with paying money for those items though if you aren't well versed in construction, maintenance, and/or you don't have a good grasp on what true costs are for repairs if these items have an issue.

Russell Brazil · Answer

In my area Home Inspection fairly common.  Radon inspection somewhat common. We typically only do sewer line inspections if there are big trees in the front yard that might have grown into the sewer line.

Tyler Weaver · Answer

I would highly recommend getting the sewer scoped.The standard whole house inspection may be of use depending on how much rehab you plan on doing.

Jason Dobbins · Answer

A home of that age I get Lead Test, Asbestos, Radon, and General inspection.  I have done sewer a few times but not often really depends on how that system looks in the basement.

What inspections do investor purchasers typically order?

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