Hello all, I am looking to purchase my first property, but need some help estimating some repair cost.
There are some minor problems with the roof and gutters, but what worries me the most is the electrical.
The property's last offer fell though and it is back on the market. I asked for the any inspection report that were taken when the property was under contract. I was sent about 10pages of the 107pg report and it mentions that the electrical is putting out less than 103V but SHOULD be putting out 110-127V. The listing agent did say that the wiring is not up to code. So this 6bd 2,700 sqft house needs to be re-wired. If anybody can help illuminate what it MAY cost or share your experiences when it comes to electrical work, it would be very greatly appreciated.
Does it need a new service too? You're looking at somewhere around $20k for the rewire. Then add $10k+ more to redo the drywall and re-texture.
Thank you Bruce
No prob.... I just remembered permits and inspections too....
@Chance B. lots going on here but first, thanks for posting! Always great to hear from a fellow Texan. Bigger Pockets does have some good state specific forums and Texas is their most active forum. Feel free to post there if you ever need some more "local" advice about things.
Will this property be your primary home or an investment property? Also, what is the ARV of this property? The number above on the rehab might be reasonable but maybe not so if you are close on numbers then don't forget you are protected in your "option period" with a standard Texas REC contract. So if you would like to get under contract, get your rehab contractor out there during that period, then you are protected if you need to back out.
Feel free to reach out if there is anything else you need help with on this one. Thanks!
Thank you Andrew, I did not know about the State Specific Forums. The property will be a primary resident using a 5% down conventional loan. There are two buildings on the property, the 2 story main house and a duplex-type building in the back. The building list price is already creeping up on ARV if anything I may loose money initially on the deal until the property was held for some time. I am unable to see the property at this time due to some scheduling conflicts but the listing agent said he would love to show it next time I am in town if it were still available. Not easy looking on market for deals at this time. BUT there is now an off-market deal in the works so it may all work out for the best. Being so new I am scared I am charging head first into something I am not prepared for and do not want to get myself in trouble.
What are you doing with the house and why does it need to be rewired? Even knob and tube, if intact and unbothered, is intrinsically safe. If it’s a rental, you wouldn’t replace the siding because it isn’t up to current building code would you? If it’s a flip, I could reason the cost.
If the entire house is 103V, its an internally shorted main breaker (cheap), an issue on the power companies end (free), or a shorted common from the weather-head to the main (not rewiring the whole house). Get a good electrician that can diagnose the issue.
If it’s a short on one circuit, it’s a lot cheaper to rewire. Again, I would pay for an actual electrician and not have a GC guess. If everyone else will not buy it because of the unknown issue, you could stand to get a great deal.
Buy a cheap voltage meter and watch a YouTube video on how to use it. Literally will take under a minute and save you an enormous amount of time and money.
Originally posted by @Greg Henderson :
Even knob and tube, if intact and unbothered, is intrinsically safe.
Sorry but most likely false. Mainly because we stopped using it in the 40s which makes it 80 years old, and the inevitable cracking, chaffing, tape falling off, Etc make it an accident-waiting-to-happen. Plus it was only (usually) rated for up to 60 Amps. Get rid of it before it causes trouble.
Thank you Greg. It I am not looking for a rehab or flip property. Something with minor cosmetic repairs is best for me at this point. I do however, agree with Bruce. From what I read, it is basically mandatory to replace knob and tube wiring due to the degradation of material, and no grounding. If it IS still on market when I am back, I may just do what Greg said and have an electrician look at it instead of just the inspector since they will be better informed/educated.
Keep us updated @Chance B.
Will do, Ronald. Thank you