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Updated about 5 years ago,
Turnkey Inspection report - here we go again!
Hey BPers!
I'm tackling a couple of strategies to diversify my investment knowledge and I am currently in escrow for 3 turnkey properties from the same provider (C neighborhoods, SFR between $65K-75K, projected numbers were looking good). I received the inspection report for the first (non-biased inspector, not referred by them) and the "deficiencies" list was quite longer than I expected. Now, I know, I was not expecting a perfect TK. I have been digging into forums, posts, articles and reading a TON of information and opinions on the matter. @Ali Boone 's article (https://www.biggerpockets.com/blog/2015-02-08-property-inspection-important-get-the-most-out-of-yours) was SO enlightening! I am also aware I should focus on the major issues that have to deal with durability, safety, or dependability of a rental home. A hand picked items from the report:
- quite a few minor electrical issues (determined safety, will ask provider to fix)
- leak from upstairs bathtub going to the downstairs kitchen ceiling and 2 other rooms with visible current water damage (quite concerned)
-insulation on only 25% of the roof (how do tenants keep warm?)
- no flooring in one of the bedrooms (wait, what? I know it's cosmetic, but I just got SO disappointed that a turnkey DID NOT have flooring at all in that bedroom??? Or should I not worry because tenant's deposit will be held for damage at some point?)
So tell me, my fellow TK investors, when is it worth going through and asking for the repairs and when is it just too many, making it not worth closing the deal?