Reading the Inspection Period Like an Operator, Not a Tourist

[Jon Hegreness]

For investors evaluating a Phoenix area purchase, the inspection period is where a lot of the real underwriting happens, and it is routinely treated as a formality. It should not be. A few things I watch during the period: the condition of major systems against their actual age, any deferred maintenance that the listing photos quietly hide, and whether the HOA documents (CC&Rs, budget, reserves, and minutes) line up with what the seller represented. The numbers that matter for a hold are not the asking price. They are the cost to make ready plus the carrying terms. None of this is unique to investors, but investors feel the misses faster because the spreadsheet is unforgiving. Use the period to verify the file, not just to confirm you still like the house. Happy to compare notes with other operators working the Maricopa County submarkets in the comments. Jon Hegreness, Associate Broker, RE/MAX Premier, Phoenix Valley