First time investor seeking advice

[Layton Downs]

Hey all,

My name is Layton, I'm 25 and located in Western PA. I've been following BiggerPockets for a while now on YouTube and decided it was time to join the online forums. 

I have a passion for entrepreneurship and real estate. After graduation college I set a goal for myself to get into real estate preferably by acquiring a multi-family unit or single family with the intent to turn it into a rental. After almost two years of living frugal I am financially in a place to acquire my first property. I will be using an FHA loan to purchase the property and House Hack.

This week I will be walking through a duplex I am interested in. I am seeking advice on what I should look out for and what kind of questions I should be asking. With this being not only my first property tour but my first time buying I'd love some advice.

Thanks in advance!

[Randall Alan]

Quote from @Layton Downs:

Hey all,

My name is Layton, I'm 25 and located in Western PA. I've been following BiggerPockets for a while now on YouTube and decided it was time to join the online forums. 

I have a passion for entrepreneurship and real estate. After graduation college I set a goal for myself to get into real estate preferably by acquiring a multi-family unit or single family with the intent to turn it into a rental. After almost two years of living frugal I am financially in a place to acquire my first property. I will be using an FHA loan to purchase the property and House Hack.

This week I will be walking through a duplex I am interested in. I am seeking advice on what I should look out for and what kind of questions I should be asking. With this being not only my first property tour but my first time buying I'd love some advice.

Thanks in advance!

@Layton Downs

 Not sure if "everything" is a respectable answer... lol!

First and foremost, look at the major systems... Roof, plumbing, electrical, and HVAC.  Ask how old the roof is.  Insurance will want it to have some usable life left on it.  A new roof is at least $6,000  and ranging up to $15,000 for a duplex in my area.  If you have to immediately invest in that, you might want to think twice... and you may not know until your insurance comes back after you have bought it and says, "We won't insure you with your roof like that".  Your 4 point inspector will evaluate this if there is not a permit on file to tell you how old it is or how much life he thinks it has.   All the major systems are the most expensive parts to replace.  HVAC probably at least $4,000 - $6,000; repiping a house $3,000 - 6,000 at least; replacing an electrical panel at least $1,200.

Plumbing... how old is the hot water heater?  Do all the controls on the plumbing work, and not drip?  Does it have more modern copper / cpvc plumbing, or is it older galvanized plumbing?  

On the electrical, is there any cloth wiring, or crazy looking circuit breakers or even fuses... some panels are fire hazards and insurance will make you replace them.  

HVAC... how old is it?  Is it working?  Under 10 years, you are great.  Heading towards 15 you are well over 1/2 life.  If you made it past 20 you are lucky and will likely have to replace it soon.  But know they can go out any time... I've had compressors fail after 1 year!  But the relative age gives you an idea of how soon it will need to be replaced.

Appliances... do they work, are they included, do they need to be replaced?  Cabinets.. are they in good working order or do they look beat up?  Cabinets are $200-300 on average if you buy ready to assemble cabinets (and that does not include installation) Flooring... same thing... does it look respectable, or worn? Paint & walls... do they look all beat up and patched, or  nice and smooth?

There are a lot of other things... terminate damage... if you sort of beat on a window sill with your fist..does termite poop fall onto it?  General rot on the exterior... soffits, fascia boards, etc.  Does it have sewer or septic?  If septic... how old, and how often does it have to be serviced... which is an indicator of if it is failing.  Is there mold on the walls / ceilings?  Water spots on the ceilings (leaky roof)?   Are there any cracks in the foundation on the outside of the house?  If a wood house, are there soft spots when you press on the wood - indicating rot?  You can paint something rotted and it will look great, but if you push on it, your finger will make dents or holes.

Pretty much the answer is: you are looking at everything... I get you don't know what everything is... but it is hard for us to list it all as well.  Look at what catches your eye.

The property inspection is really only just one part of inspecting a house.  There is the neighborhood as well... does it seem calm, safe, etc?  Since you are going to be living there, ultimately the final question is: Would you want to live there? 

Hope some of it helps!

Randy