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Updated 7 months ago on . Most recent reply
Mold Issue - Should we sell or hold?
I have purchased half duplex in Connecticut a year ago (home price seems to be up 10% since i purchased). This house was very nice and clean (build later 1980) My tenant recently claimed there is mold on 1fl (it is like basement as there is no window, it is next to garage) When i see, the mold is not only one area but it seems widely spread on the ground floor (laundry room, wall, celiling etc) Since it is OOO investment, it is not easy to deal with mold issue. This home has little cash flow and I was thinking i will hold long term but i am thinking if i should sell (will buy some Multifamily If i decided to sell with some extra cash) home this home or keep it. I have currently installed dehumidifier and monitoring the status. Since this is the first time to deal with mold, I would appreciate if anyone can share some input.
Most Popular Reply
The 10% you think you gained is long gone if you attempt to sell with an active mold issue.
Remediate the mold and then consider your options.
Whats the cost of the mold remediation? I believe mold needs to be taken care of right away but am not sure. As for your question, it just depends on the numbers. If the repair will eat up a few years of cash flow, I would just sell it and reinvest. But you will still likely have to have the mold remediated anyways. Regardless of the mold though, In my opinion, the best way to scale is to rehab, sell, and reallocate until you have enough capital to buy the units needed to reach your long term goals. Also having that capital in your account opens up opportunities like foreclosure auctions and tax sales as well.
- Taylor Dasch
- dealswithdasch@gmail.com
- 9727656563
The 10% you think you gained is long gone if you attempt to sell with an active mold issue.
Remediate the mold and then consider your options.
#2 Managing Your Property Contributor
Find out what kind of mold you have. If it is surface mold (and non-toxic), you can try bleaching everything and keeping the dehumidifier running. If you sell, you also have to disclose the problem. I'd also look to see if water is getting in or if it was just a problem with humidity.
Thanks all for advice. I am going to check with mold remediation expert first to see more detail and will go from there. I guess I have to find root cause first.
My first mold remediation was over 15k , today that same project would cost me 3k and would have the same warrenty.
Most small mold projects we hire done are completed for under 1,000 today.
Check to see if it’s just mildew. Everyone thinks because they see a spot it’s black mold and need to pay $15k to have it taken care of.
Most of the time, it’s mildew. Still need to clean it with regular household cleaning supplies, keep the dehumidifier running, and try to increase some air flow if possible.
I support checking with 3 mold experts. And then mitigate. Most importantly, find the source of the mold and correct that. If you sell with a "mold problem" I think you will lose more than the cost of a mitigation from the psychological impact the fear can have on a buyer.
I bought a property in Houston TX and the inspection report didn't showed up anything.
But when we started to fix, the Mold issue came and we had no other choice but to fix it.
It took lot of money and we went overspending on the property more than the appraisal value.
If we sell the home we will end up in loss. So we thought of giving it for rent.
In this type of scenario how to come out of this kind of loss giving deal.
Note: The Mold would not have exposed in the inspection report. Or each and every time go for the specific mold inspection report also.
Thanks