Good deal or not- mold

8 Replies

Could I get opinions on this property?

Sale price right now of 12k. Potential rent could be 600-750.

Haven't got an estimate on rehab yet. But is this deal worth it. ARV could be 80-90k

I has been abandoned for a few years mold through out. Almost definitely redoing everything. I will try to add a photo.

if you're new at this, and know there's mold throughout, walk away.  It's a big, ugly, expensive job. 

If you decide to go for it, make sure the company you use to remediate, has been at it a while and offers a transferable, lifetime warranty.  

Sure.  I was a newbie when I took on one of these.  In the future, would think twice about anything but minor surface mold.  This stuff is ugly and it's costly to fix if you're working on a tight reno budget.  And it can come back if you don't get it all the first time.

We looked at a few over the years & those we know who have jumped in, admitted they had to take out all the HVAC venting & then stripped some of it to the studs to get behind the drywall. I wouldn't even enter one without a respirator/mask (if you can find one).

@Dominique Mitchell

If you can get an estimate of mold remediation and rehab for a cost of $50,000 or less then it's worth it. It's a big job, but after your done and the ARV came to $90,000 and you can find a bank to refinance you at 75% ARV you have a property with no money in. You would have just completed a successful BRRRR.

Baby steps, get a deal that will get your feet wet mold for an extended period of time is tough.  You can treat it if it's on certain surfaces with a spray but my guess is you're dealing with something much more serious then that if it's been uninhabited for a couple years.  

More importantly it's not just the mold that's the issue you have to fix what caused the mold.  Is that structural damage?  Bad plumbing?  Roof damaged.  All three of those things are very expensive.  Depending on where it's at you may need to rip out the drywall and drywall work is an art you'll get quotes from cheap guys who learned how to spackle a couple weeks ago and your walls will look uneven and a mess and then you'll get quotes from guys who know what they're doing.  To put it simply this is not easy work that you can do like painting or learning how to install an outlet.  Mold is difficult and the other things related to mold are also difficult and if you're a newbie you don't know who the good contractors are from the bad ones and you don't know what to expect in terms of cost.  

By the way we haven't even mentioned that you have other expenses going into the house other than mold.  Don't buy unless you're certain this things a sure fire winner.