Buying my first rental - inspection & AC

[Abigail Chapman]

Buying my first rental

Hi, I’m buying a beat up rental in Terre Haute, Indiana. I am trying to not throw a ton of cash into the fees as I’m already about 12-20k deep in. For the inspection, I can add a $195 “sewer camera inspection” to the already $600 inspection.

The $700 home warranty (1 yearr) comes with a sewerage coverage. So, I would assume that if there is any issues with the sewerage, it would reveal itself within first year and I wouldn’t need the $195 inspection.

Do I need the sewerage inspection camera if I get the home warranty?

Also do I need an electrical inspection? I am getting a general inspection, radon inspection, and termite inspection along with potential sewerage inspection.

If there were issues with electrical and sewerage, does home insurance cover that?

Also, the AC may not work. Will a home warranty cover this? Or is there a way to replace an AC without spending another 5-10k? 

Lastly, is it possible to put a “seal” on a current shingled roof, should there be any leaks? Or, would it need an entire new roof? 

Thank you in advance

[Jonathan Greene]

Yes, you need the sewer inspection and you don't need the home warranty (it would never cover a sewer break). Your general inspection will cover electrical. If the AC is not working you will need an HVAC company to come out and tell if it's fixable or needs to be replaced.

To be honest, everything you are saying indicates you are going to create a money pit for yourself. If you are skimping on the buy, you will have a property that needs a lot of maintenance and it's clear you don't want to pay for it. Don't buy this property. Buy something smaller, in better shape, for the same price.

You want to kick all the tires. If the A/C is not operable you should be asking for a seller credit unless it was listed as-is.