So I have found a 3/2 SFH property in foreclosure being sold by a bank at a reduced rate. It is partially rehabbed but 2 of the rooms are severely covered in mold (bedroom and basement). Is this a reason to stay away or is it a fixable problem for mold removal specialist? As it stands the house is listed at 50k under comps in the area and that assumes the bank wont come down more.
I'm looking for others experiences and advice on those that have encountered similar situations and what they went through, thanks!
@Daniel Thomas Mold is great !!! It is almost as sexy as cat urine but still pretty sexy. In general mold must be disclosed by the seller. This kills the sale price, as you have already noticed a 50k drop. Here is the important question. What will it cost to get the mold remediated and what it the rest of the repair cost. You NEED that total number to be less that retail price, or you need to walk away. With the presence of mold, you are in the drivers seat here. Make a low offer and send your offer in with pics of the mold. The bank can either accept your low offer or you can walk away No normal (non investor) buyer will touch this house.
Just be warned , the mold you can see isnt the problem . Its the mold you cant see . There is more there than you are seeing
@Matthew Paul I agree with you. The mold you see is the easy fix (with a mold specialist). You have to make sure you have a quality mold remediation specialist to check all areas and make sure it’s ALL remediated, not just what is showing. I used to manage REO foreclosures and it was crazy to see what a cheap bid did long term as opposed to a legit complete remediation bid by a quality specialist. Don’t cheap out on this for sure.
I used to remediate mold for a living in a past life. If it is toxic black mold, the remediation process is very involved. Starts with setting up plastic containment around mold infected area, negative air HEPA filters, drywall and insulation removal, literally scrubbing studs with wire brushes, and treating with chemicals. All debris has to be bagged and workers need to be in body suits with respirators. It can get pricey quickly but if you were planning on gutting it anyway, may be worth it.
Thanks everyone, I might shy away from it as other properties have popped up. I'm looking for my first deal and dont want to bite off a piece too big and moldy to boot!
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