Would you buy a MultiFamily with a Septic Tank

[Lamont Marable]

A wholesaler disclosed this property in Ohio to me and here's what he said: "All I really have on it right now is the address is 7XXX ---- avenue. Rehab will be close to $60k ish, because it has a septic tank that needs to be hooked up to sewer. Half the units have been updated. It’s located in Elyria township. Brings in $5100 gross, just needs a great rehab. I only have like 6 pictures will get more this weekend"

My concern is the septic tank which is something that brings me nightmares.  How would you approach this deal with limited detail?

[Alecia Loveless]

@Lamont Marable Septics are common in my area. I have started using independent septic inspectors who just inspect the system, not companies who build septics, pump septics, etc because then they have an incentive to tell you that you need to buy their product.

I just had a system evaluated and it was $575 and it was very informative.

Depending on many factors with a property and what other renovation costs were going to occur if the septic system was otherwise in pretty good condition I would personally continue using it for a few years while I got the building under control and some solid CapEx built up before transferring over to the public sewer system.

Unless I had good capital resources at the beginning and got a good estimate starting out to switch to the sewer system.

Basically the 4 unit I looked at with the septic had about 20 years left on its leech field. It would cost about $1400 to maintain it per year because it needed mowing/lawn maintenance it wasn’t getting and to be pumped annually. Then after 20 years it would need to be replaced, probably $30,000. I ended up canceling the contract for the first time ever for another reason.

My 4 plex in another town costs $1400 a year with maybe a 3% annual increase. I’m not opposed to septic but I’d take sewer any day.