Termites. Where Do You Draw the Line?

[Stephen Kappre]

I'm not sure about other parts of the country, but living in South Jersey, it's pretty cool when you find a place that doesn't have termite damage. Getting a treatment and some minor repair is normal.  I went through a place today and the main floor and second floor were well worn but manageable. Upon inspecting the basement there was significant noticeable termite damage to much of the sill plate. It was worse than I have seen in a long time. 

The question is at what point do you draw the line when looking at a property where the termite damage is extensive? Do you run away as fast as possible, or do you try and gauge the cost of repair and just work it into the numbers? 

[Charlie Hampton]

I would absolutely use that to my advantage and work the price of the property accordingly.  However, I mostly only purchase complete gut rehabs anyway so its not THAT much extra work for me.  Last house I flipped I had to jack it up and replace the sill plate from termites.