3 most important item to look during physical inspection

[Account Closed]

Hi all, 

I am in feasibility period and walking through every unit for physical inspection. The building is built in 1970s and I am wondering other than foundation and slab what are the most important things that I need to watch out in order of most important to the lease.

[Joel Owens]

Look for trees next to the buildings and sidewalks. Back then landscaping was an after thought. So what can happen is trees that should have been planted closer to the building for coverage with a max height of 10 to 15 feet were not used. Instead what was planted was whatever the (deal of the day) was and some of these trees can grow 30,50,100 feet etc. When too close to the building squirrels and other animals can invade the roof lines. Additionally the root systems of these large trees can damage the main water lines to the street, pop up sidewalks near the building, and crack the foundation of the building itself.

A regular inspector is not going to do the plumbing. They might flush a toilet or look under the sink but the plumber is the one to scope the toilets and check the whole plumbing system including to the street. The cost is not cheap but well worth it on these buildings.

If you need to replace the sewer lines or water they might be under the parking lot for the building. Having to dig up the parking lot and redo the line to the street and repave can be many tens of thousands of dollars depending on the length of the run involved and how deep the lines are.

Make sure you have the full financial numbers from the seller and they verify before spending thousands on inspections to only find out sellers numbers are wrong and they will not adjust the price etc.

Hopefully in your purchase and sale contract you had language such as due diligence period does not start until ALL of the items listed are received by the buyer. Also language that buyer reserves the right to ask for additional information than what is listed herein.

No legal advice given.