Inspection report back on the "Very nicely renovated 4 unit"

[Keri J Perez]

Hello Everyone,

I just wanted to get any advice and insight as to whether this deal is something we should pass on or still try to see what the seller will do before close to address these issues. This a property that has two separate buildings each with 2 units making it a total of 4 units. Even though it was listed as newly renovated we expected to have some things to address but this seems excessive and I'm not even sure if the bank will finance a property with foundation issues where some area's are considered "severe". I have pasted a copy of the inspection report summary for anyone who wants the details listed as "building 1" and "building 2". But some of the issues are foundation caving in, one of the main support beams is rotted away and no longer attached or supported by the sill, rotting sill in basement and on some windows, the drain line is heavily corroded and has large holes allowing water/waste to spill into cellar which has caused soil erosion and sink holes collapsing the basement floor above the pipe, both sets of stairs down to basement need to be replaced, Back deck and stairs has to be removed and replaced due to rot, rodent infestation causing chewed wires in both attics, multiple fire doors needed which inspector said they can run about $2500 each ect. If the seller does agree to repair the major issues any advice from others who have done this? This property is in Lewiston Maine.  As a side note if we terminate this would be our second one that we paid for inspection and terminated in a six month period. The first was listed as "turn key" and ended up having major water damage through out entire building and then this one. So right now I'm feeling like a project magnet!  I'm aware that paying the money out is worth it to help protect you from major expenses but just wondering if anyone had any tips for when you are a new investor for things you can do to better assess the property during or even before the due diligence period. Thanks everyone!

Building 1

Section Condition# Comment

"Grounds 1 The soil level was too high at the foundation. We recommend

clearing soil away from exterior walls areas, to provide a minimum of

6+ inches between wall coverings and grade. Conditions observed

are conducive to wood destroying insect infestation and / or moisture

related conditions. Excessive debris and/or storage was observed.

This can be a health and/or safety concern. Recommend clearing the

property of all excess debris prior to close.

Exterior 5 The back porch has settled, the support posts are crooked and failing,

the floor has moisture damage and rot, the stairs are leaning and are

open and narrow. The back porch and stairs will need to be rebuilt

with proper stairs and railings.

Exterior 6 Some of the asbestos shingles were cracked, broken, or missing.

Recommend replacement of any cracked shingles by a qualified /

licensed contractor. Due to conditions observed, water penetration

may have occurred in areas not visible or readily accessible. Some of

the vinyl has chips or chunks missing that should be repaired.

Exterior 7 The window trim and sills on the left side and back windows have

moisture damage and rot and need repairs.

Exterior 8 The front door needs new flashing under the door at the kick plate.

The back doors 1st and 2nd floor are damaged, old and do not seal.

The doors need to be replaced.

Exterior 9 The exterior lights were not operable. Exterior lights should be

automatic and on at dusk.

Roofing 13 There were wires in the attic that had been stripped of its insulation

by rodents leaving bare live wires. Due to the fire danger due to the

condition the building manage was notified immediately and he shut

off the power. Evidence of rodents ( ) were observed. While this

observation may exist now, the occurrence may have been some time

ago. Client should contact a pest control company for further

evaluation.

Roofing 14 Less then an inch. The insulation provided has poor to no coverage.

The attic needs to be properly vented and insulated.

Heating - Air 15 Both rinnais are obstructed by the range. The units should be kept

clear in front of them. The 2nd floor rinnai has no power source

therefore it could not be run or tested.

Heating - Air 18 The baseboard in the 1st floor living room is broken and missing its

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thermostat dial. repairs needed.

Electrical 19 The service entrance cable and weatherhead are covered with vines

and vegetation that needs to be removed. The service also needs

ground rods. It is suggested that a "Licensed Electrical Contractor" be

contacted for further evaluation and repair.

Electrical 21 The panel attachment board is loose and barely holding up. The board

will need to be secured so that the panels don't come loose and hang

by the wires. Two or more wires were connected to one breaker in the

panel. This condition can add to the load of the affected electrical

circuit(s) causing a possible overload, tripping, or arcing at the

breaker(s). Current standards require circuits to be independently

protected. Recommend an electrician properly separate circuits. Rust

/ corrosion was observed at the panel box or breakers. Recommend

further evaluation by a licensed electrician.

Apartment Units 26 The first floor unit bedrooms and living room needs; a fire door at

the hall entry, the windows in the right bedroom and living room door

not open and close properly and are a safety hazard, several

receptacles are loose in the wall, the right side bedroom doors are

missing, the electric baseboard in the living room is broken. Unit 1

Kitchen needs; GFCI protected receptacles, range hood needed, sink

vegetable spray holder is not attached, rodent droppings in the

kitchen, need to seal the plumbing chase from the cellar to the 2nd

floor, the sink drains up hill. Unit 1 Bathroom needs, new tub/shower

surround is needed, the shower controls are loose and not attached in

the wall. The floor joist under the tub are rotted. Proper smoke and co

detectors needed.

Apartment Units 27 Unit 2 bedrooms and living room needs, fire door is needed at the hall

entry, front left bedroom has a hole in the glass, the other window

wont stay open and slams shut, the door is missing a strike plate and

hole for the latch, water damage to the ceiling, missing light globe,

right bedroom and living room has damaged and out of plumb doors,

missing globe on light, light hanging by its wires, windows are

difficult to open, missing ceiling tiles, several receptacles in the unit

are non grounded and should be replaced with a two prong receptacle

or have the wiring updated. The unit 2 Kitchen; there are no

receptacles, gfci receptacles needed, vegetable spray is loose, sink

wouldn't drain, range hood needed, power for heater needed. Unit 2

Bathroom; The toilet is loose at the floor and likely leaks. Bath

exhaust fan needed. Proper smoke and co detectors needed.

Apartment Units 28 The common areas had no lighting, or emergency lighting, the

exterior lights did not work, and a fire door is needed at the cellar

entry. Proper smoke and co detectors needed.

Basement 29 The stairs are unsafe and need to be rebuilt.

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Basement 31 Windows have been poorly blocked off. New cellar windows should

be installed.

Basement 32 The door to the cellar needs to be a fire door.

Basement 35 The sump pump is not operable nor is there a pit , and the drain

dumps at the foundation exterior. Due to the water in the cellar is is

obvious a proper sump pump, pit and drain is needed.

Basement 36 The cellar has a lot of items and rubbish that needs to be removed.

The gas water heater is no longer used and is disconnected from water

and electricity. The gas line is still connected, the gas should be

capped off and the water heater along with the old boiler removed.

The gas shut off to the water heater should also be replaced with a gas

shut off. The old oil tank is still present as well and the fill and vents.

These should be removed for safety and accidental filling.

Foundation - Crawl

Space

37 The left side of the foundation is split and is displaced. The

foundation has shifted into the cellar and will need repairs.

Foundation - Crawl

Space

38 The floor joists and sill under the 1st floor bath are moisture damaged

and rotted and will need repairs. The sill near the electric panel also

needs repairs."

Building 2

This is only a summary of the inspection report and is not a complete list of discrepancies.
Section Condition# Comment
Grounds 1 The soil level was too high along the driveway, the driveway is above
the wood structure of the house. We recommend clearing soil away
from exterior walls areas, to provide a minimum of 6+ inches
between wall coverings and grade. Conditions observed are
conducive to wood destroying insect infestation and / or moisture
related conditions. Excessive debris and/or storage was observed.
This can be a health and/or safety concern. Recommend clearing the
property of all excess debris prior to close. As a result the wood
structure has moisture damage and rot, the soil is coming in through
closed up windows.
Exterior 6 Some of the asbestos shingles were cracked, broken, or missing.
Recommend replacement of any cracked shingles by a qualified /
licensed contractor. Due to conditions observed, water penetration
may have occurred in areas not visible or readily accessible. Some of
the vinyl has chips or chunks missing that should be repaired. There
are holes in the siding that need to be patched and a hole in the fascia
where squirrels and rodents are likely getting in.
Exterior 7 The window trim and sills on the right side have moisture damage
and rot and need repairs.
Exterior 9 The exterior lights were not operable. Exterior lights should be
automatic and on at dusk.
Roofing 11 The roof has had many patches and the patching was done in a
racking method making it more likely to fail, and the back section has
exposed flashing. The roof over the back addition should be replaced
or significantly repaired. The main roof, although immediate
replacement may not appear necessary at this time, we recommend
maintenance be performed on a regular basis with annual inspection
by a qualified roofing contractor. The inspector cannot offer an
opinion as to whether the roof leaks today unless it is moderately
raining at the time of inspection. Client should obtain full disclosure
/ history information from the seller prior to close.
Several problems can occur when the racking method is used :
· If the racking method has been used, shingle joints align every
other course, which increases the chance for roof leakage.
· Using the racking method requires leaving the last nail out of
every other shingle to allow for the installation of the next
course. Installers sometimes neglect to go back and install
these missing nails, which can reduce the shingles' wind
resistance.
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· During cold-weather installation, lifting shingle tabs to install
the missing nails may crack or crease them.
· Racking can sometimes result in improper color blending.
Roofing 12 The exposed flashings appeared to be in serviceable condition at the
time of inspection. The flashing on the fascia on the front right side of
the house is loose and falling off.
Roofing 13 There was damage to rafters from squirrels and numerous chewed
wires. The chewed wires could be the cause of no power to the
receptacles on the 3rd floor. This is a fire hazard and should be fixed
immediately. Evidence of rodents ( ) were observed. While this
observation may exist now, the occurrence may have been some time
ago. Client should contact a pest control company for further
evaluation. Dead squirrel in the attic, possibly from chewing wires.
Roofing 14 Compared with today's standards, the amount or type of insulation
was minimal.
Heating - Air 15 It was obvious by looking at the furnace it has not been serviced in a
long time. The furnace filters were completely blocked solid with dirt
hair and debris. The furnace door was left off which contributes to
the issue of plugged filters. Recommend cleaning and / or general
servicing of the heating unit by a licensed / qualified heating
contractor prior to close.
Heating - Air 16 Tenants complained about not having heat on the 3rd floor. It is likely
due to the poor duct work and the plugged furnace air filters. Repairs
needed.
Electrical 21 The plumbing bond is not attached to the pipe, it is laying on the
floor. Two or more wires were connected to one breaker in the panel.
This condition can add to the load of the affected electrical circuit(s)
causing a possible overload, tripping, or arcing at the breaker(s).
Current standards require circuits to be independently protected.
Recommend an electrician properly separate circuits. It is suggested
that a "Licensed Electrical Contractor" be contacted for further
evaluation and repair and to ensure proper ground bonding.
Plumbing 22 The visible portion of the main pipe and valve appeared to be in
serviceable condition at the time of the inspection. The supply was
surrounded by water where it comes in to the house. It is possible the
water line may have a leak between the house and street and its
seeping in to the cellar. It is suggested that a "Licensed Plumbing
Contractor" be contacted for further evaluation and repair.
Plumbing 24 The drain line where it turns to cast and goes through the foundation
has heavily corroded and has large holes allowing the waste to spill
out in to the cellar. The failed lines below the floor have caused soil
erosion and sink holes collapsing the basement floor above the pipe.
It is suggested that a "Licensed Plumbing Contractor" be contacted
for further evaluation and repair.
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Apartment Units 26 Fire door needed at both the front and back hall. The front bedroom
door doesn't latch closed. The kitchen has a water stain on the ceiling
from the leaking toilet above, loose receptacle, Missing drawer and
knob on the cabinet. The bathroom has a toilet that is loose at the
floor, the vanity is water damaged and coming apart, the shower
controls are loose in the wall and need to be secured. Need proper
smoke and carbon monoxide detectors
Apartment Units 27 The front entry door needs to be a fire door. The back entry door is
falling off its hinges. The 3rd floor receptacles have no power, no
doors on the bedrooms, loose hand rails on the stairway. Very few
receptacles on the 2nd floor resulting in the use of several extension
cords. The kitchen needs a range hood. The sink needs a new faucet.
The light over the sink is hanging off the cabinet. The toilet is loose
on the floor and moves easily. There are water stains in the ceiling
below indicating the toilet is leaking in to the ceiling. The bath tub is
unprofessionally plumbed and needs to be redone. Need proper
smoke and carbon monoxide detectors
Apartment Units 28 No lighting in the common hall. The stair railing to unit 2 is too low.
No emergency lighting. Need proper smoke and carbon monoxide
detectors
Basement 29 The stairs are obstructed by a plumbing stack, and the stairs are
falling apart and unsafe. New stairs need to be built.
Basement 30 The concrete slab has caved in in areas due to the leaking drain pipe
under the floor
Basement 31 Some of the windows are below grade, due to the soil and water they
have rotted out and the soil is spilling in to the cellar. Window above
grade was boarded over, the wood has moisture damage and rot and is
coming apart.
Basement 32 Fire door is needed at the entry.
Basement 33 Missing receptacle or switch covers were observed at. Recommend
covers be installed for safety. Exposed wire splices were observed.
Whenever an electric wire is cut and reconnected, the splice should be
encased in a covered junction, outlet or switch box to prevent shocks
and separation of the splice.
Basement 36
Foundation - Crawl
Space
37 There are a few areas where the foundation is caving in and will need
repairs. There is also a hole near the water main that is letting water
in and a hole in the foundation where it appears critters have been
coming in.
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Foundation - Crawl
Space
38 One of the main carrying beams is rotted away and no longer attached
or supported by the sill. Repairs needed. The sill and wood structure
below grade and under the driveway has significant moisture damage
and rot significant repairs needed.