Help: Brick & Drywall cracks on potential investment duplex

[Daniel Mock]

Hi, 

Looking to purchase 1st investment property. This particular one shows solid cash flow, coc, and cap rate. However, it’s got a crack in the brick by this window and on the inside there’s another window with drywall cracking going up to the ceiling. Looking to get feedback on how risky this would be to purchase. Thanks!

[Carleton T.]

From the pics you sent it looks like the foundation is settling or has settled at one point in the past.  Could mean the water coming off the roof when it rains is making the ground soft under the footers.  But if the crack is very old then likely it is not an issue anymore.  It is common for a house to be built and in some places the ground under the footers was not properly compacted before they pour the concrete.  But later in the life of the house it settles and typically once it has settled it won't continue to happen after that.  Unless of course, like I mentioned, water from rain is making the ground soft right next to the house.  So, Just make sure your gutters are installed properly, that the grade of the ground makes water run away from the house and not towards it, make sure there is no standing water after a rain especially near the house.  Make repairs as needed to those things.  And if you really wanted to make sure nothing is getting worse, measure the cracks, inside and out, and once a year measure them again to see if it is getting bigger.   

Hope this helps.