Purchasing rental property with prior water damage

4 Replies

So this would be my first investment purchase. The owner of the house has listed the property for sale in auction but however he will accept offers. My concern is the Water damage that was fixed by the Insurance company. Is this something i should be concerned about? The agent said there was water leakage from the second floor and everything was fixed by the insurance company. I will recieve clear title. Do you think my insurance premuim will go higher if I own the property, Not sure how this works. And Is it even worth investing in a water damaged property? 

see if you can get copies of the mold remediation service that fixed the damage and follow up with them your insurance should not be effected unless there were multiple claims I'm a 5 year period 

First you want to find out what the extent of the damage was. If it was a leak from the second floor it was most likely a plumbing or roof leak. Make sure that the repair was done properly and that no moisture has been trapped in the walls or ceiling. They may have not had a mold remediation service involved at all, but get any paperwork that you can on who and how the repair was made. Hire a home inspector to walk through the property if possible and check the effected area with a moisture meter. I wouldn't worry about your insurance premium hopefully this was a temporary problem that has been resolved.

Thanks @Account Closed I checked out the property. The insurance company had replaced the carpet and the tiles in the kitchen including the cabinets. The house was freshly painted and bathroom was redone as well. I put an offer and they accepted it however I put a condition to get the home inspected for any major issues like mold or furnace & etc. let me know if you guys know of any home inspectors in MD area specifically Reisterstown MD. This would be my first investment property kinda nervous but lets hope everything goes smooth. 

If there is a basement or crawlspace, I'd also be worried about water leaking all the way down and inviting termites or carpenter ants into the property.  Just a thought.  Make sure that's not overlooked. Good luck!