Septic- the good, the bad, and the profitable?

[Josh Servo]

New investor looking to do a live in flip of a house. Found a house that I am very interested in and it fits almost all of our other criteria for a live in flip to LTR. Biggest issue I am seeing right now is that it is on septic. I have heard a lot of people talk down on septic, but living in Italy (because of military) everyone here seems to be on septic and not have any issues.

A few questions for everyone.

How big of pain is septic?

How much would you add for capex and maintenance here?

How hard/costly is it to switch from septic to public?

Is it worth it since this deal could fly under the radar of others because of septic?

Thank you so much for any input! 

[James R Crady III]

Josh,

Don't be afraid of septic. Just need to be aware of the unique differences in maintenance requirements.

I've had multiple properties with septic systems new and old, lateral lines - anaerobic - etc... If maintained, they function fine.

Recommend you reach out to several septic service companies local to the property in question. If you get to the inspection portion of purchase, schedule a couple of septic companies to come out and take a look at the system. At different times obviously. Things to ask: what is the annual maintenance requirement for the system? What does that maintenance cost? Do you project any major maintenance needs in the next 3-5 yrs, 10 yrs etc... Basically, you want to leverage their expertise to help you gain knowledge of the particular septic system and provide you the data necessary to answer your CAPEX question.

Example, if they say the system is new and only needs ~$300.00 annual service then that is the baseline for your CAPEX. If they say you will need new lids within 18 months then factor that in.

May be wise to add a little buffer. Unless, you have that built in overall in the analysis.

Personally, I would not consider switching to city sewer unless the entire septic system needs to be replaced and sewer is close.

Septic is fine when system is designed correctly and routine maintenance is conducted.

Hope that helps.