Help me evaluate repairs
New to Real Estate · louisville ky · Member since 2021 · 4 posts · 2 votes
FIRST DEAL NEW INVESTOR
paid inspection report
Hey Guys! This is the first property I am looking to purchase. They are asking 180,000; it is a duplex (2 bed, 1 bath, 2 units)
This is an estate sale and a quick decision
Any feedback helps!
I recently reviewed an inspection report for a 40+ year old duplex and wanted to get some input, but also share my own takeaway. Nothing in the report is an immediate deal breaker on its own, but the combination of issues gives me pause—especially the pattern of moisture showing up in multiple areas (crawlspace, interior walls, and drainage issues outside), along with suspected microbial growth and an active plumbing leak in the crawlspace. That suggests a broader moisture problem rather than isolated defects, which can lead to hidden rot, structural damage, and ongoing costs if not fully addressed. Beyond that, several major systems are at or past their expected life (HVAC systems around 20–26 years old, water heaters over 20 years, older electrical with a fuse panel), so there’s a clear expectation of near-term capital expenses. If I moved forward, I’d treat this as a heavier project—not a light rehab—and only proceed if the price reflects something like $30k–$60k+ in repairs and I had strong cash reserves. Immediate priorities would be crawlspace remediation (including moisture control and leak repair), addressing any mold concerns, fixing key electrical safety issues, and correcting drainage, with HVAC, panel upgrades, and other repairs phased shortly after. The biggest risk here is scope creep—things like crawlspace work, mold remediation, electrical upgrades, and old plumbing systems tend to get more expensive once opened up. I’d also want specialists (crawlspace/waterproofing, mold inspector, HVAC, electrician, plumber with sewer scope) to better define the true scope before committing. Overall, this feels more suited for someone with experience or strong reserves rather than a first-time, low-risk deal. I’d try to renegotiate based on the findings, but if the seller isn’t realistic or the moisture issues prove more extensive than expected, I’d seriously consider walking and finding a cleaner opportunity.
I recently reviewed an inspection report for a 40+ year old duplex and wanted to get some input, but also share my own takeaway. Nothing in the report is an immediate deal breaker on its own, but the combination of issues gives me pause—especially the pattern of moisture showing up in multiple areas (crawlspace, interior walls, and drainage issues outside), along with suspected microbial growth and an active plumbing leak in the crawlspace. That suggests a broader moisture problem rather than isolated defects, which can lead to hidden rot, structural damage, and ongoing costs if not fully addressed. Beyond that, several major systems are at or past their expected life (HVAC systems around 20–26 years old, water heaters over 20 years, older electrical with a fuse panel), so there’s a clear expectation of near-term capital expenses. If I moved forward, I’d treat this as a heavier project—not a light rehab—and only proceed if the price reflects something like $30k–$60k+ in repairs and I had strong cash reserves. Immediate priorities would be crawlspace remediation (including moisture control and leak repair), addressing any mold concerns, fixing key electrical safety issues, and correcting drainage, with HVAC, panel upgrades, and other repairs phased shortly after. The biggest risk here is scope creep—things like crawlspace work, mold remediation, electrical upgrades, and old plumbing systems tend to get more expensive once opened up. I’d also want specialists (crawlspace/waterproofing, mold inspector, HVAC, electrician, plumber with sewer scope) to better define the true scope before committing. Overall, this feels more suited for someone with experience or strong reserves rather than a first-time, low-risk deal. I’d try to renegotiate based on the findings, but if the seller isn’t realistic or the moisture issues prove more extensive than expected, I’d seriously consider walking and finding a cleaner opportunity.
Have you had a contractor/handyman walk? Roof looks OK. Exterior has minor items. ACs look old. Furnaces look OK. Electrical looks questionable and wondering the scope needed there. There's mold. Water heaters are older.
There's not enough info to say if it's still worth it. You need to look at comps, market rent and that local market. Get bids and have numbers, then make the decision off that. This will take some $$ to get it where it needs to be (not saying that's bad).
When you are evaluating repairs before buying, I would avoid one lump-sum rehab number. Break the work into systems and risk buckets first. The big categories I want to understand are roof, foundation/structure, plumbing, electrical, HVAC, windows/doors, exterior, kitchen, baths, flooring, drywall/paint, landscaping, permits, and cleanup.
Then mark each item as visible, hidden-risk, or optional. Visible items are things you can price with reasonable confidence. Hidden-risk items are things that may expand once work starts: water damage, old plumbing, panel capacity, sewer line, mold, framing repairs, grading/drainage, and code issues. Optional items are upgrades that may help resale but are not required to make the property safe and functional.
If you are making an offer, use conservative numbers unless you have contractor input. A deal should not only work if every repair comes in cheap. Add contingency, holding costs, utilities, insurance, taxes, loan fees, selling costs, and buyer concessions.
Also compare your repair plan to the comps. Do not spend money the resale market will not reward. The right rehab is not the nicest possible version of the house. It is the scope that gets you to the target exit with enough margin to justify the risk.