Bought a home without basement and wondering if it is good?

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Bought a home without basement and wondering if it is good?

Sriram Kumar Bikkina
Member since 2021 · 33 posts · 7 votes

Hi All,

I won an offer to a home without basement and am wondering if I missed anything here. This is in Kingston and my realtor is very good and trustable and he did not warn me anything about homes that don't have a basement.

The semi I bought was under market and has no basement but is less than 20 years old.

Is this fine or do I need to look at anything that is concerning in these type of homes? I am not concerned about resale value as I bought this for rental potential and if that is the only concern I am okay with it.

Thanks,

Ram

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
4y

My house doesn't have a basement either. 

[email protected]301-893-4635Podcast Guest on Show #192
District Invest Group546 Reviews
WebsiteView Page
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  • Mike Singh
    Member since 2020 · 23 posts · 8 votes
    4y

    Hi Ram , 

    Sorry , can you elaborate a bit more on what you're asking ? 

    From an investment perspective , there is nothing wrong with a house that has no basement as long as it aligns with your investment strategy . Personally , I would have preferred something with a basement that I can convert to a legal unit . This would allow me to increase the rental income and cashflow . 

    Mike

    1Reply
  • Sriram Kumar Bikkina
    OP
    Member since 2021 · 33 posts · 7 votes
    4y

    @Mike Singh, thanks a lot for the response. To elaborate, I put an offer for a semi in Kingston that doesn't have a basement. The home just has the ground level and the upper level which can be converted to a duplex quite easily and that's exactly what I am planning to do.

    But while speaking to a friend, they told me that we should avoid homes without basement due to some crawl space issue or something. The one I bought doesn't have a crawl space for sure as this is 20 to 25 year old house.

    This house is perfectly meeting my cashflow goal which is hard to attain in the current market and that is the exact point that motivated me to go for it. Based on the information you shared, I think I don't have to worry about it now. 

    0Reply
  • Mike Singh
    Member since 2020 · 23 posts · 8 votes
    4y

    @Sriram Kumar Bikkina , thanks for providing more info . I haven't  heard of any specific  issues with a home without a basement due to crawl space . Maybe someone in this forum with some more reno experience might be able to help lol 

    Your deal sounds good otherwise !!

    1Reply
  • Sriram Kumar Bikkina
    OP
    Member since 2021 · 33 posts · 7 votes
    4y
    Quote from @Mike Singh:

    @Sriram Kumar Bikkina , thanks for providing more info . I haven't  heard of any specific  issues with a home without a basement due to crawl space . Maybe someone in this forum with some more reno experience might be able to help lol 

    Your deal sounds good otherwise !!

    Mike, thanks a lot for the detailed explanation. I took my first step into RE investing and want to get it right.
    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    4y

    My house doesn't have a basement either. 

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group546 Reviews
    WebsiteView Page
    2Reply
  • Sriram Kumar Bikkina
    OP
    Member since 2021 · 33 posts · 7 votes
    4y
    Quote from @Russell Brazil:

    My house doesn't have a basement either. 

    Hi Russell, thanks for the response. I noticed lot of homes without basement in the states but here in Canada that is very rare based on my observation. But yeah looks like not much difference with or without a basement.
    0Reply
  • Dwayne Poster
    Investor · Van Isle · Member since 2021 · 455 posts · 226 votes
    4y

    I’m on the other side of the country, but about half our construction is on crawl space or pad, no basements. As long as it’s not an oddity that reduces its saleability, no problem.

    1Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    4y

    Not all homes have basements.  You knew there was no basement when you bought it.  Not sure what you think the problem is.  If the house is only 20-25 years old, I wouldn't worry about it.

    0Reply
  • Sriram Kumar Bikkina
    OP
    Member since 2021 · 33 posts · 7 votes
    4y
    Quote from @Theresa Harris:

    Not all homes have basements.  You knew there was no basement when you bought it.  Not sure what you think the problem is.  If the house is only 20-25 years old, I wouldn't worry about it.


     @Theresa, thanks for the response. Yes I knew there was no basement but I heard there is nothing wrong with it and when one of my friend mentioned I made a wrong decision, I started to worry. But my research stated I have nothing to worry about. I reached out to this forum to find out experts opinion.

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    4y

    Not everyone does the same thing which is what makes it fun.  As long as you are happy with it and it works for what you want, that is all that matters.

    1Reply
  • Account Closed
    Rental Property Investor · Port Coquitlam, BC · Member since 2017 · 520 posts · 527 votes
    4y

    @Sriram Kumar Bikkina I suspect that the reason your friend is questioning your decision is that investors sometimes convert a basement into extra (rentable) space.  My house has no basement; no big deal other than lack of storage. If the numbers work and the property is aligned with your goals, ignore your friend.

    0Reply
  • Paul K. McCoy
    Matewan, WV · Member since 2016 · 38 posts · 5 votes
    4y

    @Sriram Kumar Bikkina

    My guess is that your friend may be trying to bring awareness to the fact that crawlspaces can typically create alot of problems particularly moisture intrusion, dampness, mold, etc. and can lead to moisture damage to framing components.

    I am by no means saying that all crawlspaces have these issues but I see it a lot in my area. Even basements can have similar problems.

    0Reply
  • Sriram Kumar Bikkina
    OP
    Member since 2021 · 33 posts · 7 votes
    4y
    Quote from @Account Closed:

    @Sriram Kumar Bikkina I suspect that the reason your friend is questioning your decision is that investors sometimes convert a basement into extra (rentable) space.  My house has no basement; no big deal other than lack of storage. If the numbers work and the property is aligned with your goals, ignore your friend.

    Thank Chris. That makes sense to me. This is a newer house and there is no crawl space. 
    0Reply
  • Sriram Kumar Bikkina
    OP
    Member since 2021 · 33 posts · 7 votes
    4y
    Quote from @Paul K. McCoy:

    @Sriram Kumar Bikkina

    My guess is that your friend may be trying to bring awareness to the fact that crawlspaces can typically create alot of problems particularly moisture intrusion, dampness, mold, etc. and can lead to moisture damage to framing components.

    I am by no means saying that all crawlspaces have these issues but I see it a lot in my area. Even basements can have similar problems.


     Thanks for your inputs Paul. Appreciate it.

    0Reply
  • Greg Soon
    Member since 2019 · 112 posts · 19 votes
    4y

    @Sriram Kumar Bikkina

    I have looked into several properties with basement in Maryland with intention to buy based on the listing. I found many of them the floors are not even, some with significant slopes. Later my realtor friend told me he does not like properties without basement because it is much harder to run pipes and a lot built underground and hard to fix.

    This does not deter me from looking into this kind of property in the future, just need to check conditions and weigh price against potential difficulty in repairs

    0Reply
  • Allen L.
    Rental Property Investor · Chicago and mainly invests in KS remotely · Member since 2018 · 360 posts · 314 votes
    4y

    Crawlspace foundation is cheaper to repair than basement foundation, and although there are some issues with moisture, I consider it the best foundation for rental properties. Easy for plumbers to replace lines as well. However, in Ontario it is somewhat rare to see houses with crawlspace foundation, for whatever reason.

    1Reply
  • Gary L Wallman
    Rental Property Investor · Beavercreek OH · Member since 2018 · 422 posts · 970 votes
    4y
    Quote from @Sriram Kumar Bikkina:

    Hi All,

    I won an offer to a home without basement and am wondering if I missed anything here. This is in Kingston and my realtor is very good and trustable and he did not warn me anything about homes that don't have a basement.

    The semi I bought was under market and has no basement but is less than 20 years old.

    Is this fine or do I need to look at anything that is concerning in these type of homes? I am not concerned about resale value as I bought this for rental potential and if that is the only concern I am okay with it.

    Thanks,

    Ram


     I much prefer rentals with no basement. Below grade flooding and moisture/mold issues can be a nightmare. Failing sump pumps can be a late night maintenance call as well.

    As a consequence, I seek out simple slab homes as my preferred choice.

    Gary

    0Reply
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