Inspector · Orlando, FL · Member since 2016 · 21 posts · 12 votes
Hi All, New to BP and doing my Due Diligence/ Research before pulling the trigger to buy my first investment property. My question is....does anyone have any input on the importance of having a home inspection done on an apartment/Condo buy and hold? Also, does anyone have any good suggestionsfor Home Inspectors in the Orlando Area with experience in this Niche of property?
With Condo's you need to make sure that the Inspector does not just inspect the Condo itself, but does do an exterior examination also. A great inspector is going to let you know the life-cycle of the siding, and potentially scope out the roof to give you an idea about how long before the next special assessment should be coming...
And while in condo's in general you own what is between the faces of your drywall, if the HI finds moisture or leaks in your plumbing you could be facing a bigger headache than if you just owned the whole building.
Also have you made sure the condo is financeable as an investment property? Most Condo's/Banks have strict buying/lending requirements on condo's.
Getting a quality inspection before you purchase can save you costly repairs down the road. I like working with Brian Bentley of Pillar2Post. Another option is 20/20 Property Inspections. Either one does great work!
With Condo's you need to make sure that the Inspector does not just inspect the Condo itself, but does do an exterior examination also. A great inspector is going to let you know the life-cycle of the siding, and potentially scope out the roof to give you an idea about how long before the next special assessment should be coming...
And while in condo's in general you own what is between the faces of your drywall, if the HI finds moisture or leaks in your plumbing you could be facing a bigger headache than if you just owned the whole building.
Also have you made sure the condo is financeable as an investment property? Most Condo's/Banks have strict buying/lending requirements on condo's.
@Troy Fisher .... thank you for your answer......so if discrepancies are found with areas that are outside of the ownership realm of the actual condo unit itself.....would it be the responsibility of the HOA to fix any discrepancies? Have you had any kind of experience with that kind of situation? I'm thinking that if there were any problems found that were the responsibility of the HOA to fix, it wouldn't give you any leverage as far as price negotiation since repairs would now be dealt with by a 3rd entity not directly involved in the sale of the property? Seems to me that if you found a condo/apartment with external issues found during the home inspection, it might be best to just walk away and look for another deal....
@Richard Davis Inspectagator is one of the better home inspectors in the area for investment purchases.
As an example, on one of my condo listings the buyer's home inspection revealed mold hidden in the walls beneath and behind the HVAC air handler. This was a freshly rehabbed property where the neither the leak nor resulting mold growth was obvious in a visible inspection.
As for external issues with the property. There is a risk of special assessment if the property has deferred maintenance requiring attention sooner than later and there isn't a sufficient reserve in the budget.
@Troy Fisher .... thank you for your answer......so if discrepancies are found with areas that are outside of the ownership realm of the actual condo unit itself.....would it be the responsibility of the HOA to fix any discrepancies? Have you had any kind of experience with that kind of situation? I'm thinking that if there were any problems found that were the responsibility of the HOA to fix, it wouldn't give you any leverage as far as price negotiation since repairs would now be dealt with by a 3rd entity not directly involved in the sale of the property? Seems to me that if you found a condo/apartment with external issues found during the home inspection, it might be best to just walk away and look for another deal....
Mostly you are concerned about Special Assessments. But if there is a leak in the plumbing in the walls, the Condo Association is supposed to be responsible for it. You just want to be aware of it make sure if the condo association is supposed to be responsible and that the current owner either notifies the association or begins the process. Always use the Inspection as a guide versus your investment goals and as a negotiation tool.
Thank you for that Troy....so safe to say then that it would be wise to ask for copies or paperwork showing what the HOA is responsible for when inquiring about a property......one more thing to add to my checklist!! Thanks!!!