Closed on my first property last week!

160 Replies

@Justin Wotring if you’re planning on holding this property it’s probably not a bad idea to have somebody who knows what they’re talking about like a foundation specialist take a look. I’d recommend finding a 3rd party on your own who isn’t affiliated with your agent or PM because it seems they’ve already dropped the ball on this issue. I wouldn’t trust anyone making light of this, as it will certainly effect your wallet at some point if you’re planning to hold this property. It’s true many basements have some amount of water and almost all have at least some efflorescence, but that doesn’t mean it’s not an issue to be concerned with if there’s more than a little water which from the photos, there’s obviously more than a little water in this basement. The problem with that is it means the foundation likely has significant cracks which could be an indication it is in need of expensive repairs. If permanent repairs aren’t made, the risk is that the foundation continues cracking, the walls start to bow inward and eventually they fail. Also that much water inevitably creates mold which is not only a health concern for your tenants, potentially leading to vacancy/inability to collect rent, but it also causes wood-framed construction to rot. Once mold spreads throughout the house, gets into the sheetrock, framing etc. you’ve got major issues. It’s something I’d want to nip in the bud personally. Applying waterproof paint inside is a very short-term fix. It usually bubbles and flakes off in a matter of a few months and actually makes the problem worse over time. It could be just a matter of adding a sump pump and a French drain, and hopefully that’s the case. I can tell you with high certainty that the drylok, shrub removal and “grading” your PM did is not going to resolve the issue permanently because from the photos we can see significant water seepage through the bottom of the foundation walls especially in the corners which is a textbook indication of a pressure issue. I’d caution you that anyone glossing over foundation issues is probably biased in some way trying to sell you on the property or sell you additional properties or a turnkey provider or something, and honestly I wouldn’t trust anything else that person says personally. What else are they overlooking if something as basic as a leaking foundation is glossed over? It’s common sense that something to check for in a property is whether or not it’s got foundation issues, and that much water intrusion would be a concern of foundation issues for me as someone who actually works on and has owned rentals for years. There are enough expenses associated with owning property that will eat into your cash flow over time, just regular maintenance stuff on an older house like this could easily consume all of your cash flow, and major capex issues such as a foundation repair or a new roof could easily eat up many years worth of capex reserves so I would recommend paying close attention to this type of thing. Anyone telling you differently simply does not have your long-term best interests in mind.

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