Orangeburg pipe!!!To invest or not??

Question

Hello bigger Pockets forum. I am looking to invest in my first rental property. They have fallen out escrow twice due to a plumbing issue. In Spokane, Washington  thereare pockets of Orangeburg in different neighborhoods. The house has great bones and is large for the price. I know the sellers are eager and Im not trying to be detered due just not having any experience.  I know it can be an easier fix or a complete nightmare.  How much would you try to get the price down for an issue like this? And when would you completely just walk away?

Kristin Whitaker · Answer

Common problem in Spokane.  I'd do it and have, just prepare yourself for cost to fix.  In my experience, the highest cost has come from asphalt tearup & replace, whether the main is in the alley or the street.  If it's in the alley and the alley is dirt, you're in luck.  Call Kalin Excavation, highest integrity in town and great prices.  Get a quote and bring it back to your sellers, that way your ask is justified.

Matthew Sprott · Answer

Hey @Shira Albert! I bought a property here in Spokane earlier this year. I had the sewer pipes inspected and sure enough, the Orangeburg piping was blistering and had some roots penetrating the line. I took this information back to the seller and we agreed that if they replaced the lines I would purchase the property as the other items on the inspection were merely cosmetic. It was about $10,000 in repairs. I would not have bought the property otherwise, knowing that it could be a matter of weeks before I had to cough up the 10k. Hope this helps!

Shelli Nemec · Answer

Yes I’m aware of the old sewer issues/Orangeburg in Spokane!  I have one. Just offering a possible solution (insurance) that many do not consider. You don’t always have to replace them immediately. Depends on your inspection result. Best of luck.

Shira Albert · Answer

Hey @shellinemec.  I am newer to Spokane and it is the paper and tar composite piping that is in a variety of homes in Spokane. I think it might even be nationwide. anyways the point being its life span is approx 50 years and it can cause thousands of dollars of damage and cost thousands of dollars to fix so a sewer eval is a must. Many of the 1950's homes in spokane have this piping and it is bound to fail. Thanks everyone for the response

Shira Albert · Answer

Thanks so much for the recommendations. @Kristin Whitaker thank you so much I will reach out to them. Thanks so much @Jennifer Bryan. I am finding that I am so ready to invest that I may be neglected the weeds of the numbers. good strategy love the numbers not the property. That already helps me feel calmer and more patient. Have either of you ladies seen any real estate investor meetup groups in the spokane area?

Jennifer Bryan · Answer

@Shira Albert Hello! I am in Spokane as well. This is interesting as I had never heard of Orangeburg pipes before. We do always pay for a sewer scoping as part of our inspection process. When inspection reveals any major issue- plumbing, electrical, roof etc we evaluate whether it is worth proceeding and typically what helps in that decision process is getting a quote from a professional (or two) that would do the work. We can then use this number to negotiate with the seller. Sometimes you can get to an agreeable number and sometimes you can’t. I remind myself to fall in love with the numbers (profit) and not a property. If the numbers don’t work you move on to the next.

Shelli Nemec · Answer

Hi Shira,You can get insurance for older sewer mains, but do some research to make sure they cover Orangeburg and where in the line the coverage starts. Let us know what you find out!

Hannah Reichert · Answer

@Shira Albert I know a little late of a response (did you end up purchasing the home?) but we have some Orangeburg on our property and the inspection sewer scope was favorable. They said to do regular scoping to insure it hasn't failed but it wasn't a deal breaker in our books.

Shira Albert · Answer

so glad it worked out for you @Matthew Sprott. I think the sellers I am trying to work with are getting fatigued from failed deals. I understand their pain but can take on that much work. thanks again.

Orangeburg pipe!!!To invest or not??

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