Just bought a 40 year old modular that was left alone for 2 years

Green Bay, Wisconsin
Rehabbing & House Flipping
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Just bought a 40 year old modular that was left alone for 2 years

Kevin Rea
Menomonee Falls, WI · Member since 2013 · 12 posts · 12 votes

I just had an offer accepted for a waterfront property on Lake Michigan near Door County in Wisconsin.

I couldn't pass up this place knowing that land on Lake Michigan in this area seem to get bought before most even see it on MLS.

It has a modular home built in 2002 and seemed well taken care of but had not seen any visitors for the previous 2 years.  In the spring they found a leak in the roof so they replaced the whole roof and hired someone to remove the mold in the attic.

When I walk in, there is a strong mildew (mold?) odor in every room.  There is 2 places in the walls that have the drywall removed to get to the water pipes.  All water (sinks, toilet, shower) have good pressure.  Floors seem firm, no soft spots.  No signs of mold in any corner.  I noticed cat litter and cat cage out in the garage.

My offer was accepted 7/29, so the clock is ticking to find any problems.  I have water/well coming out 8/3 (water testing is the longest lead time, 7 days).  Then I have a home inspector coming out 8/4 (he was recommended and has 30+ years experience), he said he could tell if and what kind of mold there is just by smelling the inside.  Septic will be next week.

I feel confident that the overall house structure is solid but you never know.  The roof is new.  The siding and deck have some green growth on it but appears that a simple sanding would make it look like new.

First question: Can I hire multiple home inspections? My fear is if I hire someone who happens to miss a major problem.  Will the listing agent only allow one inspection?

Second question: Its a modular home on a brick foundation (I think on a cement slab) and is 1340 sf.  Based on the size, what is worst case amount needed to make this place, not just rentable, but pristine and get rid of the smell.

Last point to make is that the seller must pay for anything the home inspector finds that is over $1000, so this should cap the amount I will need to spend on repairs.

I am overly worried at this point because I may not know all of my outs for this deal and would hate to get sucker punched on my first investment.

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  • Kevin Rea
    OP
    Menomonee Falls, WI · Member since 2013 · 12 posts · 12 votes
    3y

    Correction: the home is a "manufactured home".  Not sure what that means, but it appears to have standard wall thickness not the thin mobile home walls.

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  • Erin ChurchPro Member
    Real Estate Agent · North Augusta, SC · Member since 2017 · 254 posts · 233 votes
    3y

    Hey Kevin,

    I was going to ask if it was manufactured or modular. There is a significantly different building code for the two. 

    Why is the seller paying for anything over $1000 that needs to be remediated? I've never heard of that and the seller's agent would be a bad agent if there was a stipulation put into the contract that allowed that. You get a roofer out, siding buy, deck guy, plumber, electrician (you get the idea), they can all find work that needs to be done to a 20 year old home. If you do have a stip in the contract that forces the seller to pay for anything over $1,000, please share it as I'd love to see it. 

    On the inspector, you should be able to have as many as you'd like - especially with it being vacant. I'm not sure if it would be worth the money though. It's around $400 (give or take a hundred) where I am for a SFR.

    As far as your outs, I'm not familiar with WI real estate contracts. Do you have a due diligence period?

    As for the mold smell - it's probably super musty if it's been sealed up for two years. Of course, have experts test if you feel there's a safety concern. I would expect the property to smell though. If there are no soft spots in the bathrooms/kitchen, then you're a step ahead of the game. I think almost every manufactured home (also called mobile homes even though it's not totally accurate) I've been in that's more than a few years old has soft spots in the floor. Maybe they took care of all that with the roof work.

    Just to double-check, does your lender know you're buying a manufactured home? They don't get the same rates/terms as a stick built in most cases.


    Ask your agent if you have a due diligence period, when it ends, and for what reasons you can get out of the contract if you want to.  Ask your agent what other contingencies you have (like financing, appraisal, etc). This will let you know all the ways you can get out. That being said, how much is your earnest money? That's what you're risking if you break the contract with fault and I'm hoping that knowing that offers some comfort. I'm guessing it's less than all your inspections. :) 


    Also, it sounds like you may have some nerves and are wanting to get out of the contract. Run the numbers and reassure yourself. It sounds like you got lucky to get this one under contract. :) It's totally normal to feel nervous when you get a property under contract but don't let those nerves make you step away from a great deal (assuming it is). :)

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  • Rachel H.
    San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
    3y

    @Kevin Rea Yes, you can hire multiple home inspections if you pay for them. I don't see any problems with that. 

    Regarding your second question, it would depend on what you find out during the inspection. Once you're aware of the issues, then you can bring in contractors to start giving you estimates to give you a better idea of how much it'll cost. 

    Hope that helps. Best of luck with the deal! 

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  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    3y

    Once you address the water leaks, you can use ozone machines to get rid of the odors.

    Logical Property Management4.9455 Reviews
    WebsiteView Page
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  • Kevin Rea
    OP
    Menomonee Falls, WI · Member since 2013 · 12 posts · 12 votes
    3y

    First of all, the title was wrong: its a 20 year old modular (Schult Homes).

    @Erin: Attached is the contingency about the $1000 remediation.  The seller does have the "right to cure".

    I was told that we cannot have more than one inspector by our agent.  Not sure if its an ethical thing in case but since we have 15 days to do this, I am sure it would be a hassle for the both agents to have to show up for multiple inspections.

    This is a cash offer so no lender involved, although we are going to get an appraisal to help us decide how much we want to soak into it and to possibly get a HELOC.

    Earnest is $10,000 which would be painful to swallow but if the numbers do not add up then it is part of investing.  Sometimes when you jump on something you have to make all your decisions while in the air.

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  • Shane J. RenardBusiness Member
    Real Estate Broker · Green Bay WI · Member since 2021 · 65 posts · 28 votes
    3y

    You can hire whom ever you want as long as the Sellers agree to this in the offer. The odor issue may be something bigger. Ozone machines kill the smell as long as you find the source and take care of that first. 

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