Plumbing Cost Estimate

3 Replies

Hello, I am a new Realestate investor and I am working on getting a second investment property to rent out. I found a potential investment but it looks like it’s going to take some work. When I first walk into the property there is a noticeable smell as well as a big patch on the kitchen roof that shows signs of a leak in the plumbing. When I walk into the garage it looks like they were in the middle of deciding if they should go ahead and repair the leak or sell it as is, because I saw panels of the garage roof taken off. It looks lIke the owner has decIded to sell as Is. The garage showed signs of mold as well. The unit is a listed at 117k with comparisons of 135k. I was thinking about offering 100k to see if they’ll bite since there are other minor repairs besides the leak. I have never dealt with plumbing issues before and my question is if it was worth the purchase? How long does the unit have to stay vacant to repair plumbing and how much does it usually cost? Thanks for any insight

If you are thinking if ealing with a property with mold/ roof/ plumbing problems, get a good inspector out there first to assess the situation.  It could be a $500 fix, or it could be $50,000 to fix, depending on the mold damage.

Can the seller give you any information on the damage, how long it has been leaking? Hve they gotten an estimate on the repair?

Dont go into this blind. Get as much information as possible to make an educated decision. 

Also, make sure the water is turned on for the inspection.   Best of luck!

Make your offer contingent on inspection and financing. If you delay too long and it's a good deal, it will be snatched up by an astute rehabber who can take one look at it and estimate the return-on-investment (ROI) in a heartbeat. After the inspection you will be more knowledgeable of what needs to be done and be able to cost it out. If the costs to repair are too high, you can always renegotiate your offer. The lender will require an appraisal and won't approve the financing if the house value is lower than what you are borrowing. Build your team of experts and get some bids. If you lockup the property with a solid offer, it will give you time to more accurately assess the situation and costs involved. Build your team of experts now and get some bids.