Foundation home problem

[Nicole Rynia]

How much is too much of a foundation problem to purchase an investment home? I have an investment home I'm looking at that's cash flowing in rent. But there is around 30 K that needs to be spent on foundation problems. I had a foundation expert go out there. What do you guys think?

[Kerlous Tadres]

I’m an investor and agent here in Columbus, Ohio. I’ve seen my fair share of foundation issues pretty common with older homes in these markets.

$30K isn't necessarily a deal killer if the numbers make sense. If the property is cash flowing now, has solid ARV potential, and the repair is fully scoped and warrantied, it could still be a great buy. Just make sure there's enough equity to absorb the cost, the repair actually fixes the issue (a second opinion never hurts), and you've got some cushion in your budget just in case.

Also, think about your exit strategy. Flips can be tougher with foundation history, but for a long-term rental, it might be worth it.