Turnkey investment property - Inspection report Advice needed.

[Srini Murthy]

Hello All,

Got an inspection report on a turnkey property in the Mid-West. This will be managed remotely through property managers. Here are the significant issues list. Older home Pre 1950.

1.Wood windows throughout the home are difficult to open & rotting in various areas.
2. Siding, fascia, and soffit was missing, and/or damaged at one or more locations.
3. Exterior wood siding, framing, and/or trim rot was observed at one or more locations.
4. Wear such as granule loss, exposed fiberglass, biogrowth, nail pops, and/or buckling shingles was observed. The roof seems to be in its last stages, maybe couple more years.
5. The vent stack and/or service mast boot flashing is damaged or deteriorated.
6. Gutters are loose, clogged, improperly sloped, leaking, and damaged at multiple locations.
7. Foundation cracks, settlement, & deterioration was observed at one or more locations.
8. Active water intrusion was observed at the foundation wall, box sill, and/or floor at one or more locations.
9. HVAC is from 2008/2009.
10. No Carbon Monoxide or Smoke Alarms
11. Chimney cracks, biogrowth, and deterioration was observed. Chimney cap was missing.
12. An active leak(s) was observed. The leak was verified visually, or a moisture meter read above the recommended dry range of 14%. Recommend repair as needed by a licensed plumber.

I am mostly concerned about the Windows, Roof, Gutters, HVAC and foundation water leaks. The rest I assume are minor fixes which can be done??

Pros - New water heater, refreshed Kitchen and baths. New carpet and paint.

So my fellow TK investors, seasoned pros please give me your expert opinions. Without credit for the roof and HVAC I am hesitant to proceed..

[Chris Clothier]

@Srini Murthy,

This is absolutely not what the best Turnkey companies in the industry would consider Turnkey.  Inspectors can sometimes use language that makes issues sound worse than they are and I understand your reference to some being minor fixes (assuming you mean they need to fix them), but every issue listed here is a major issue to me.  Forget about credits and future fixes, there is no need for you to negotiate.

It not only points to issues with this particular property, but more importantly points to operational issues.  Many of these issues listed are basic items that any good operating company would never miss like every window should open regardless of condition, gutters should be tight and clean, never missing fascia, siding and soffit should all not only be fixed but in place, smoke alarms and fire extinguishers in every home, etc...  These are operational basics. 

In my opinion, there is not need for further discussion.  This is not a property in any condition that you should purchase, nor a company that you should trust to purchase from.