Inspection found moisture in basement... now what?

Question

I am buying a duplex off MLS and just had the inspection a few days ago. The property is in decent shape for a 1950s era duplex.  Many of the items the inspector pointed out, we had seen during the showing.... except visible moisture/water in the basement.  Our showing was prior to a spring thaw and rain over the past several weeks so we did not notice any visible moisture at that time. The sellers have recently put new insulation and vapor barrier in this area of the basement (it would appear to mask the moisture problem?) so the inspector was not able to see exactly where the water is seeping in and if there are any related foundation issues.  There were a couple cracks on the exterior of foundation that would need repair.

We've asked the sellers permission to have an "invasive" inspection to have someone remove the insulation and look at the foundation.

It is very likely that adding new gutters and redoing some landscaping and grading around the house would make a world of difference on the moisture issue and this will not impact our immediate ability to cashflow the property.

My partner and I are newbie investors and only on our second property, so I feel like we have more of a "homeowner" mindset than an investor... How do experienced investors view things like water/moisture in the basement of a property? Is it all a numbers game? Our mindset is that if there is substantial cost to repairing the issue, we are prepared to walk away from the deal if the sellers aren't willing to reduce the price a little to compensate. Are we overreacting?  Any points of advice are welcome!

Chris Christianson · Answer

@Selena Walsh, congratulations on the purchase of your second property. @Bruce Runn is primarily correct in his suggestion. Insulation and vapor barriers do not draw any moisture out but they trap the moisture that is inevitably going to be there in. Pretty much all cellars (meaning a basement that is more than half way below grade) have moisture issues. You can mitigate these issues with landscaping and gutters but you will never eliminate them. What I do in basements is make sure that the moisture has a way to dry. You have to leave some space between the foundation wall and your interior finish, and make sure there is a way for air to circulate in that space. Fiberglass batt insulation is never advised. Foam boards or closed cell spray foam are all we use. Think about it, you are going to get moisture penetration so do you want to block it from escaping with a piece of plastic and then put a nice paper backed sponge in between to hold that water around your wood framing?

Bruce Runn · Answer

There are numerous ways to mitigate moisture as long as it's not flowing in.  Gutters and regrading usually fix 90% of the issues.  Doing a renovation in Minneapolis and the city planner advised us to not put a vapor barrier or insulation in the finished basement since it draws moisture and that is a bigger issue.  It's all good as long as you have a heat source.  There have been recent studies that show now insulation is better.

Andrew Mickelson · Answer

Congrats on your second deal!

John Woodrich · Answer

Late for advice but prior to purchase I would have budgeted for drain tile, replacement of basement windows and repair of cracks and hoped for a cheaper fix.  As mentioned above, grading and gutters are important.  I have one property located in a flood zone and the drain tile keeps up nicely.  I have only owned the house for a year or so but I am already getting confident in re-finishing the basement.  Also a nice dehumidifier can help rid of any moisture smells that may concern residents.

Selena Walsh · Answer

Hi Rick- We didn't end up going for the invasive inspection, rather just offered a decreased purchase price and the sellers eventually accepted. We are supposed to close in 2 weeks. We are immediately planning for new shingles and gutters and landscaping/grading around the house.  Once we have some cash flow we will probably tackle some of the foundation repairs. Yes, this is for STR. We already own a duplex in Minneapolis and are doing STR and its going quite well.  However this new duplex is in a small town in central MN (lake/cabin town for local tourists) so a little more of a risk in terms of the STR demand.  But very little competition so we are excited to see how it goes!

Rick Baggenstoss · Answer

@Selena Walsh  What did you decide to do?  I've repaired water intrusion in lots of 50's homes.  It can be simple.

Is this STR?  I came across the post as I'm preparing a duplex for STR.  Would love to hear how it's going and see if we can help each other.

Luke Jackson · Answer

Hey Allison,

My name is Luke Jackson and I currently live in Alexandria. I have recently started a new property management business in town because I felt like there was a lack of quality/professional management businesses in my area. I'd love to discuss the services I can provide you with so that you can get the most out of your investment. Please call me anytime.

Thank you,

Luke Jackson

3208151839

Allison Danzl · Answer

I found this forum as I searched for anyone with the connections of duplexes in Alexandria Mn. My husband and I own a duplex there, and it has been doing quite well except we also had some water in the basement supposedly due to gutters not being put back on by the lawn mowing company. Anyone have suggestions for PM in the Alexandria Mn area? We are not getting very good communication with ours.. as newbies it makes us a bit nervous! Thanks!

Bryant Amundson · Answer

@Selena Walsh I have family there too! My aunt owns a cleaning company and my uncle has a few rental properties. Granted, I'm new and haven't really asked them about their businesses but let me know if you'd like me to connect you with them!

Inspection found moisture in basement... now what?

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