So I have house under contract that I plan to fix and rent out.
Has foundation issues (center of slab is the 'high point" and as you move toward the perimeter, the slab drop increases...so the edges have sunken over time...its an older house).
Sewer test failed as well, cast iron pipes...typical of this area.
Debacle: do I fix the slab, the plumbing, both or neither at this time?
Logic tells me to fix them both since the leak will eventually exacerbate the problem...not a matter of if, but when.
If I fix only the plumbing, the slab may react and worsen possibly since I am removing the source of the moisture that caused the issue. If I fix the slab only, I see this repeating eventually.
Fixing neither seems like a mistake.
I am not afraid to handle the job, but I would need to get the house much more discounted than what I have it under contract for to make the numbers feasible.
You should fix them both and if the numbers don't work when you analyze the deal with those rehab costs factored in then just pass on this one and find yourself a better deal. Taking short cuts now can lead to profits getting cut short later!
No choice, you have to fix both as they are entwined together. Foundation is the key to all structures and once you get it done you will not have any issues. You can't sell with the problem and it won't get better but will get worse. Fix it and you will have more options to maximize your profit and cash flow. Good luck, I've done both and mostly labor involved.
I just started doing different things in the investment realm and have been to hasty and it has cost me more in just the past few months. Thank goodness it was only a couple hundred dollars and not a house!
Analyze the deal conservatively with all potential expenses(worst case scenario) in mind. There are no called strikes in investing, the only way you strike out is by swinging and missing so dont be afraid to let this deal go if it doesnt work with both repairs factored in.
@Miles Stanley No doubt fix both and if the numbers don't work or the seller won't come down, on to the next one!
Glad to read that everybody suggested fixing them both. It would be a huge mistake to not fix them both at one time. Of course if this is a purchase decision, make sure the cost of both repairs factors into your purchase decision.
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