Most houses have some kind of problem or problems.
Real estate investing requires expertise in recognizing these problems and the costs for repair. Sometimes you stumble onto a nice investment by discovering a house where mom was an excellent housekeeper, and all that's necessary is minor cleanup of the premises to prepare for selling. The truth is that most people don't even sweep the floor when they move after the house is sold. And sometimes the house they leave behind is a wreck. If a yard looks trashy and overgrown, you know how to pick up the garbage and mow. If the walls look drab and shabby from years of neglect, you know how to replace new wall paneling or repair holes with wallboard mud. If these basics are not understood, you can always get a quick lesson at your neighborhood Home Depot or Loew's. But zilch experience is necessary for slinging a paintbrush, unless you are just sloppy. Paint is the easiest of options in giving fresh renewal to property. Cosmetic repair is simple and easy. You can either do it yourself or hire a handyman. Houses that really only need some yard work and a few gallons of paint are readily found in the real estate buyer's market. But these houses tend to be far from deeply-discounted or bargain-priced investments. Some house problems constitute severe potential pitfalls in real estate investing. The most critical problems are foundation irregularities and mold. I inspected a house recently that had serious foundation problems. My attention was first called to the entrance steps with broken brick due to shifting of the house on its foundation. I know nothing about foundation problems, and I would never tackle such a problem on my own. Mold!!! One of the most serious problems in buying any house today is mold contamination, especially in the southeast. Let me warn you: repairing a mold-infested house can cost you big bucks. An infested house must first be tested by a certified lab to ascertain the extent of damage. You are in a heap 'o trouble, boy, if you buy a house WITH MOLD, unknowingly or knowingly, and if you fail to remedy the problem or try to sell without disclosure. Mold is a serious problem in today's housing market. This warning doesn't mean you should not buy any house with mold infestation. Factor the remedial repair into the buying price and the selling price. Mold is damaging to health. Some people are more sensitive to mold than others. Mold replaced the asbestos scare of the '70s and '80s when Texas homeowners sued insurance companies for millions of dollars over mold damage. The mold problem has migrated from the South and is moving into northern states. Many Alabama insurance companies went out of business because of the mold problem, and those insurers left usually refuse to insure any house with mold history. Don't let mold catch you with your pants down! Most houses have some kind of problem or problems. Learn to distinguish between the cosmetic and serious problems, and recognize that solutions are usually available for either. You, the real estate investor, must become a problem-solver of house problems. I inspected a house recently that had serious foundation problems. Mold!!! One of the most serious problems in buying any house today is mold contamination, especially in the southeast. You are in a heap 'o trouble, boy, if you buy a house WITH MOLD, unknowingly or knowingly, and if you fail to remedy the problem or try to sell without disclosure. Many Alabama insurance companies went out of business because of the mold problem, and those insurers left usually refuse to insure any house with mold history. A sure way to avoid these problems you'll see when investing for a house is to get the house inspected by a professional investor. We at CVHI determine to offer the best price while maintaining the best professional service for all of our clients. Check out our pricing here.
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About Robin ChenRobin Chen has been around in home improvement niche for more than 5 years now. He is a great home inspector with dozens of experience in other various field as well. ArchivesCategories |