Help - Rental Plumbing Issues - Cost Benefit Analysis

Help - Rental Plumbing Issues - Cost Benefit Analysis

Rental Property Investor · Member since 2019 · 3 posts · 0 votes

situation: we have a duplex that is experiencing plumbing issues on the front unit. We have had three plumbers out to work on unclogging the pipes and we have also replaced a section of the pipes. Now, we are still having issues with the line getting clogged. We have had someone come out with a camera and he recommended we replace the remaining cast iron pipe from the front unit ($800-1600). We had another plumber come out and he recommended us replacing the mainline. the washout is under the driveway so the normal $3k mainline replacement is now $7-12k due to jackhammering the driveway. 

we have heard different things and we are seeking to be effective with our expenses as $7-12k is a pretty hefty expense that we would prefer not to pay if we don't have to. The other thing I began asking myself is well what is the opportunity cost of selling the duplex and putting the money into another investment. we have about $50k equity in the duplex as it sits now. we enjoy the cashflow ($500/mo) from the duplex but does the cashflow justify the cost? it would be over a year to recoup our investment in the mainline replacement and as a conservative person, I am also considering some additional expense to come up in the normal course of life and we need to expense something else. so I'd say 2-3 years before the property is profitable the way it operates now.

Open to hear thoughts and feedback on my approach as well as experience someone has had with rentals/plumbing. Thanks in advance.

Kris

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Rental Property Investor · Springfield, MO · Member since 2019 · 462 posts · 365 votes
6y

Selling it is an option.. however you will need to disclose the plumbing issues which will have a big impact on the price. Usually the drop is price is actually more than the actual repair... so I would not try to sell duplex . However, I am a buy and hold person so I have a natural tendency to lean towards keeping properties vs selling.

That would leave me with the option of repair.. and how to repair. I am a bit confused on how the driveway got poured over the main sewer line clean out... but I guess the why isn't important since it is already done. One thing I would look into is talking to a few dirt work crews in my area to see if there is another option besides removing the driveway. You may be able to get away with trenching on either side of the driveway and then tunneling under the driveway to push through a new main line. That way you will save a lot of time and money having to repour the driveway after the repair.

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  • Rental Property Investor · Springfield, MO · Member since 2019 · 462 posts · 365 votes
    6y

    Selling it is an option.. however you will need to disclose the plumbing issues which will have a big impact on the price. Usually the drop is price is actually more than the actual repair... so I would not try to sell duplex . However, I am a buy and hold person so I have a natural tendency to lean towards keeping properties vs selling.

    That would leave me with the option of repair.. and how to repair. I am a bit confused on how the driveway got poured over the main sewer line clean out... but I guess the why isn't important since it is already done. One thing I would look into is talking to a few dirt work crews in my area to see if there is another option besides removing the driveway. You may be able to get away with trenching on either side of the driveway and then tunneling under the driveway to push through a new main line. That way you will save a lot of time and money having to repour the driveway after the repair.

  • Rental Property Investor · Member since 2019 · 3 posts · 0 votes
    6y

    @Jon Reed thanks for the response, Jon! Your comment has sparked some things in my mind. Very helpful! I appreciate it! I didn’t think about digging around the drive way and tunneling. Sorry for the delayed response.

  • Rental Property Investor · Helena, MT · Member since 2017 · 282 posts · 117 votes
    6y
    Why do you need to replace the piping? Roots growing through it? Collapsed? or just clogged with years of debris? Have you seen the video from the scope? If not, consider buying a scope camera off Amazon for < $100 and do the scope yourself. Show those pictures and/ or video to a couple plumbers to get the best scope of repair. From a quick google search there are foams, chemicals, and augers to rid your sewer pipe of branches, debris, etc.
  • Rental Property Investor · Stratford, CT · Member since 2019 · 154 posts · 115 votes
    6y

    @Kristofer Kohlstedt, I would also question the ability of who the contractors are? is this a large company or just some 1 man plumber? the reason I say this is because you want some warranty behind the work that will be performed, as you don't have much of an option. as @Jon Reed mentioned, you cant just sell the house and not disclose it. A simple inspection will pick that up. Also, unless you sell the property "AS-IS" (will raise some eye brows on its own", you wont be able to sell without fixing it, or lower the price significantly because of it.

    I would recommend to get a reputable company out there and get another opinion. There has to be an easier way of fixing it rather than go throw the driveway. Keep asking to see if you get the same recommendation, then you can figure out pricing as well as what the best course of action is. Whoever you chose, make sure there is some warranty that comes with it. You don't want the problem to re-appear because someone did not remove the section of the pipe that needed to be removed. 


    Last but not least, ask for financing. 7-12k is a lot of money as one payment. most of these companies will give you payment options. it might not hurt you in the end if you end up in a $100-$150 monthly payment for a few years. Increase rent steadily over the next couple of years to recover some of your costs (you usually blame this to the taxes going up). No one can argue with uncle Sam's cut! :)


    Good luck!  

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