Properties with mold??

9 Replies

know what you’re getting into and how much it will cost to replace the badly affected drywall and clean the wood.

I would also plan on getting a mold test done by an environmental company before you close everything up. Consider it insurance if a future tenant ever feels sick or anything.

Like anything else, you can fix anything, just know what the budget looks like!

@Nate Bibbo Mold can be remediated and the good thing is that it scares many buyers away, which lessens the competition.  As one of my flipper clients says, "mold is gold!"

Here's what CDC has to say:

I go into a lot of homes that have mold and my lungs don't like it.  I start coughing pretty quickly and for a day afterward.  I now keep a respirator that's designed for mold in my car.  Home Depot and Lowes have them for about $25.00.

The worst case I ever saw was a 1,000 sq ft SFR that had the copper pipes stolen. The crooks let the house flood up to about the 3 foot level. The black mold was about 1/8" thick on the basement walls. The rest of the house had *every* surface covered in mold - so much so that there was even contamination of the exterior shingles.

We got a quote from a local mold remediation company for $6,000.  That should set the high end of what remediation would cost for a property that size.

@Charlie MacPherson thank you. What you said is encouraging. I’m looking at a property that is not nearly that bad. Some mold in the corners of a few rooms. The property has been listed for almost a year, and they have dropped the price over 100k! There is an estaimate with the listing for mold removal and complete remodel of all rooms effected,It comes in at 45k. That’s quite a bit higher then what you mentioned. I’ll try and upload some pictures here. Thanks everyone for your help.

Depends on where the mold is. A little bit of basement mold might not be a big deal, but mold near a water supply can be disastrous. For instance, my brother rented a place out where there was a small leak and some mold. The landlord was in denial and neglected to do anything. The leak worsened, and in combination with the heat and humidity, the mold literally overtook his entire apartment unit. Shortly thereafter, there were mushrooms on all of the walls. Like, legitimate mushrooms, and you couldn't breath in the unit. The health department shut that place down.

There are no standards for mold in real estate, unlike other recognized environmental hazarads such as lead paint and radon.

Be that as it may, mold scares the bejesus out of buyers, so for rehabbers, mold is just another defect to be remediated. Part of the cost of doing business.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you