Port Saint Lucie Florida

9 Replies

Hi, any investors making deals happen in Port Saint Lucie/Treasure Coast area? If so what is your strategy (BuyN'Hold, Flips) and how's its going? And has anyone have experience with buying a Chinese drywall home?

Yes. http://www.chinesedrywall.com It will cost $30.00 a square foot to remediate. The class action lawsuit is over. I would only offer lot value.

Agree with Sandra, be mindful sq ft is not the living sq ft it's a lot more because you are talking about walls not floor.  Usually homes built between 2002 and 2007 are homes that have defective drywall and it is a serious health hazard.  All the drywall and corroded pipes need replacement.  This will be costly and you have to be very careful.  

There are new suggested standards for CDW houses. Remove the drywall. Remove outlets, light fixtures and breakers. Replace all wiring/plumbing for critical systems such as sprinklers and smoke detectors regardless of appearance. Plumbing may or may not need replacement. Pressure check it before replacing drywall. 

There are no EPA disposal requirements, no specific rules in Florida for any of this, just suggestions. Local laws could vary from that though. 

In essence what you end up with is a roughed out shell ready for finishing. How much that costs you to complete can vary a lot just like any other rahab. It depends on who is doing the work, and how high grade you want to/should do in that neighborhood. Pay accordingly, knowing what those costs will be up front, and it can be well worth it. But it is not the kind of job I would suggest for your first few flips. 

I have seen Chinese drywall destroy some air conditioners, quickly.  

They need to be gutted to the studs. All wiring, plumbing, kitchen, bath, hot water heater, air conditioner, lights, fans, appliances need to be replaced. The chinese drywall is so corrosive that is dissolves metals. You can't even park a car in the garage. 

Originally posted by @Sandra Gibson:

They need to be gutted to the studs. All wiring, plumbing, kitchen, bath, hot water heater, air conditioner, lights, fans, appliances need to be replaced. The chinese drywall is so corrosive that is dissolves metals. You can't even park a car in the garage. 

What are you basing this statement upon? The original lawsuits had a ruling by a judge that the above needed to be done. Since then CPSC, EPA and several major builder's organizations have all agreed that those measures are excessive and often unnecessary. Air conditioners are left at a maybe, to be inspected. I think we have been at better than 50% being good. Plumbing is a maybe depending on condition, but is not usually needed unless there would be a sprinkler system (fire sprinklers, not irrigation type). Electrical wiring for all but safety systems is not necessary, the findings were that corrosion occurs to a small degree on the outside but not to a degree to effect safety or performance. Outlets, switches, relays, and circuit breakers are necessary to replace. Hot water heaters, depends on where they are located, but not normally needing to be replaced. Appliances, haven't seen any issues myself because none of the ones I have done had any .... that may be indicative, may not. Lights and fans, they have been fine but then I never looked close because we replace those in a flip anyway. 

The current guidelines are pretty loosely worded. To me that does leave room for the shysters to do an incomplete or improper job. But it also gives leeway to the honest people to do what is needed to do the job right without throwing out the baby with the bath water.

BTW, you do know that the "Chinese Drywall" problem encompasses several brands, and that the amount of sulfuric acid off-gassing varies not only by brand, but vintage. That is why the guidelines have such leeway. We allow for the possibility of ALL of those things needing to be replaced, except wiring, when bidding on a CDW property. We have never come close to doing that, so far.

http://chinesedrywallcomplaintcenter.com/builders.htm       

Thank you all for the quick response.

Originally posted by @Sandra Gibson:

http://chinesedrywallcomplaintcenter.com/builders.htm       

Ok, so you are citing a website with no scientific data, just hysterical claims made by those with an agenda. There have been numerous scientific studies done that prove what I have stated above. Not that there are not problems, but that they need to be evaluated on a case by case basis. Corrosion on a solid 14 or 12 gauge electrical wire, on the very outside, is not serious if the cause is corrected. The same with copper plumbing that has no leaks and passes a pressure test. And yes, as I said the guidelines do, unfortunately allow a lot of leeway for the dishonest to scam someone. But then that is true in most flips in general. We document everything very, very clearly with pictures when we do any flip so that we can show what we did to add value. Any honest flipper will do the same because of the reputation that has been built due to scammers.

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