1st potential rehab: advice?

Question

Hi all,

I'm currently mulling over putting an offer in on a house that I viewed a few days ago. The offer would be for $120K, and the house needs a new kitchen, new hardwood flooring throughout (1800 sq ft home), and there appears to have been a leak from the upstairs bathroom that will need to be dealt with. Along with some other small things, I'm estimating rehab in the $45-50K range. Comps in the area suggest the ARV will be $230-240K.

My big concern about the property is that the upper level floors slope from back to front. I'd like to have a foundation inspection to make sure that there isn't a huge structural problem. If there isn't, and this can be fixed by using a filling compound or leveling it with plywood, would you proceed with the deal?

Jay

Jay Hassey · Answer

I think I should have mentioned this in my original post, but there was a multilevel addition added a few years back. The addition floors are fine. It's the original 2nd level floors that slope. Could this mean that the addition was done sloppily?

Norman Wrensch · Answer

I agree with Mark, you could have someone look at the foundation, but I don't think that is the problem. Or the first floor would have the same problem It sounds more like in the frame work, If it is a old balloon frame house the second story floor is usually just sitting on a 1x4 notched into the studs of the wall. If that 1x4 is failing which you mentioned a water problem so there could be a rot problem. It could be fixed by removing the wall coverings and jacking up the floor then sistering another shoulder stud right under the floor joist to support it. But that would most likely mean a gut job on most of the house too, so you had better figure that into your estimate too. And if you have rot there you may be in for bigger problems, that may not show until the walls are opened. Proceed with caution, and negotiate with the extra expenses in mind.

Mark Elliott · Answer

i agree with frank. the numbers look good. of course it will cost a great deal more for any structural repairs needed, which is definitely a factor in the purchase price. coming from the point of view of a home inspector, as i am, i find it unusual that the second floor slopes but not the first floor. if there is a foundation issue, the first floor will slope in parallel with the second, as the second floor is built on the first which is built on the foundation. i would say you likely have a structural issue with the frame work of the second floor, which may also be evident in the roof line. regardless, it warrants having a structural engineer look at it and factor any additional costs into your purchasing offer.