Now that you have made the decision to invest in Real Estate, you want to be sure that your investment property will not bankrupt you. Your goal is not to beautify Houston by remodeling run down homes, but to make a return on your investment. That inner loop property you think is a steal may actually be a money pit. Bill Edge, your inner loop realtor would like to share a few tips with you on how to avoid buying the wrong home.
I have spent years working with investors who buy properties to flip or lease in the Greater Houston area. I am continually amazed by what my clients want to buy. They think a fixer upper is a home which is near burned to the ground or about to fall down.
The first thing I tell my clients is that I represent a home remodeling company and a roofing company who buy homes. Both of these companies have been in business for over 25 years and neither of these companies will touch homes with major faults. Below you will find a list of major problems which may cause you to remove a home from your list of prospective homes to buy.
FOUNDATION
Is that part of the building which supports the building’s superstructure. With Harris County’s unstable soil it is hard to find an older home that has not had some foundation work. When approaching a home I look first at the brick lines. Is the mortar and the brick line solid. Does the driveway, the porch and the concrete patio show that a foundation company has cut a square out of the cement and placed piers under the home? The general rule is if you can get a dime inside a crack the foundation needs repair.
If the problem is isolated to a corner of the house, the repair may take only 4 or 5 piers. If the slab is cracked in the middle of the home then it is most likely not repairable. If the home shows the slab cracked in a number of spots then it should be avoided. When deciding whether to repair or not, the general rule is if you can get a dime inside a crack the foundation needs repair. If you are standing straight up and it feels like you are standing on a slope find the front door and leave.
ROOF
The entire construction used to close in the top of the building. Houston is tough on roofs, we have driving rains, hail storms, hurricanes, and unrelenting sunshine. IF water gets into the home it can travel both vertically and horizontally. The damage to a home can be great. If you can see the sky inside the home and there is no skylight, you probably need to select another home. When looking at the roof start with the shingles. Are they all there? Are some shingles raised or curling? Is there a metal drip edge which protects the home from water penetration? Reshingling a home is okay, replacing the eaves, decking etc is a job best left to another buyer.
WATER DAMAGE
There are three major kinds of water damage to avoid when buying a property. The most obvious is the home is located in a low area that floods. Next the home may have structural or roof damage which allowed water inside the home. Last, the home owner or vandal decided to flood the home. A water damaged home may need replacement of insulation, sheet rock, electrical, cabinets, and flooring. There maybe environmental issues including mold which have to be taken care of if the home is to be eligible for homeowners insurance.
ELECTRICAL
Older homes may have exposed wiring, an outdated weatherhead, and electrical panel. It is not uncommon for lights to flicker and fuses to blow when an appliance is turned on in an older home. Improper wiring may cause the wires to overheat and cause a fire. The light fixtures maybe dated, additional plugs, and wiring may be needed to update the home. If the home has Aluminum wiring, pigtails will be needed (short length of wires used between multiple cable connectors and a device like a duplex receptacle) at the electrical panel to avoid a fire hazard. Costs for electrical work can be costly since a qualified electrician is necessary to perform the repairs.
PLUMBING
The plumbing system is located inside walls, the attic and beneath the foundation. The plumbing systems in older homes may have not been replaced since the sewer lines were installed. Lead pipes were used for plumbing before the discovery of lead poisoning and may need to be removed. The condition of the bathrooms may be so bad that everything needs to be replaced. The water heater needs to be looked at for both condition and code violations.
FRAME
The surrounding or enclosing woodwork of windows, doors, etc., and the timber skeleton of a building. Homes with massive termite damage and extensive wood rot are nightmares waiting to happen. If the windows all need replacement then the cost is going to be too much to justify buying. Doors should be checked to make sure they fit in the frames. A wall may have to be moved to give the house alight and airy feel. Adding additional rooms and removing rafters are costly expenses which should be avoided.
SHEETROCK
Sheetrock is a plasterboard or drywall product that may have been imported from China. Chinese drywall has been found to contain dangerously high levels of sulfur compounds. Thousands of homes in America may contain this dangerous material. If the home has a sulfur smell you need to forget buying this home. It is okay to buy a home that requires minor sheetrock repair. However, if the previous owner has taken a hammer to every wall, the cost to repair those walls will be prohibitive. If the sheetrock has cracks 2 inches wide, then it is probably an indication the foundation has failed and the home is pulling apart.
TREES
Trees can add to the value of a home and enhance its beauty. Large trees can also be a major problem if planted near the home. Tree roots can tear up the driveway and foundation. Tree limbs can destroy a roof. If tree roots can lift the driveway a foot into the air, imagine what they can do to the slab of the home. If you are going to buy a home with nearby trees think about adding the cost of root barriers into your expenses.
Call Bill Edge at 713-240-2949 to see Houston Homes in 24 hours or less.
Source: How to know the symptoms of Chinese drywall | eHow.com
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