[DC/First Multifamily Purchase] Does Inspection add value?

[Kevin Park]

We are about to purchase a 7 unit multifamily property in Washington DC (our first investment) last renovated in 1964, but the property is clean and looks structurally sound. Our legal counsel recommended that we have inspector do Environmental Phase I and Property Assessment test (hazard materials such as asbestos, mold, or lead paint) on the property based on the boilerplate disclaimers in the purchase and sales agreement. So I approached a couple of inspectors, and they are asking about ~$4-6K, but their proposal suggests that it's based on their senior engineer's visual inspection except one inspector using some sort of x-ray for asbestos. I would like to ask your opinions as to whether these inspections add value? Alternatively, I was just thinking about waking thorough with our inspector. 

Thank you. 

[Ray Harrell]

That's a lot for an inspection. My 3 unit inspection was $500. That sounds like overkill to me. But an inspection is almost assumed for a new property and doesn't really add value. It's for your own peace of mind to be assured that you know going in the condition of the building and any costs that may be associated with repairs. Asbestos, mold, and lead paint inspection should be included in the inspection.