Red Flags on Property Walkthrough

[Long Di]

First timer here, just did my first in-person showings this last weekend. For the more seasoned investors, what questions do you ask during a walkthrough? What things do you look for? What are the red flag signs  that you pay attention to? 

[Randall Alan]

Quote from @Long Di:

First timer here, just did my first in-person showings this last weekend. For the more seasoned investors, what questions do you ask during a walkthrough? What things do you look for? What are the red flag signs  that you pay attention to? 

Major systems are the first thing I look at… age of roof, AC, and if on Septic, how old is it and how well is it functioning.  Those 3 things can drive $40,000+ in expenses that you want to consider when you will have to face them.   
If you buy a house with a 25 year old roof or AC, you know within 1-3 years you are going to spending a considerable amount on capital improvements.  

Other concerns would be really old electrical or plumbing for the same reasons.  Often it will be your insurance company that tells you “fix that” or they are not going to cover your property… so know the decision isn’t always yours to make, as the bank will demand your property remains insured.  

Termite damage is another big one… little black grains on the window sills are often a give-away there.  

Cracks in foundations, soft floors on crawl space homes, sloping floors are some other items.  
More broadly, the neighborhood itself… if it is a D-F area, you will have increased crime, more turn-over, poor tenant choice, and less demand when you eventually sell the property. 

those are a few for you.

randy