Signs of Issues?

[Karen A.]

I know that seeing certain things in a property can indicate potential issues with the property.

What types of visual signs do you look for, during your walk through of a property, that might be indicators of possible issues with the property?

What things have you seen that have alerted you to issues that would require repair and/or replacement?

Also, if you are able to share any recommendations regarding search terms and/or threads that could prove helpful as I research this topic, it would be greatly appreciated.

[Joe Splitrock]

@Karen A. visual condition will tell you a lot about a property. If you see major signs of deferred maintenance, it usually means there is more you cannot see. Here are some things off the top of my head:

- The only thing you cannot change is location. That is the first thing I look at and no matter what the price, I don't pick a bad location.

- Next major item is structural which can have significant cost to repair. Look for cracks on the foundation, sagging or un-level floors. 

- Water damage is a big one. This could be on the ceiling or in the attic if it is the roof leaking. It could be under sinks or below floor indicating leaks in a bath or kitchen. 

- Age of items that have a limited life. For example furnace, water heater and appliances all have limited life span. For example a 30 year old air conditioner could fail on the first hot day in summer. Plan for the cost of replacing those items. Don't assume you can get a couple more years out of them.

- Smells can be a sign. For example cat pee can indicates the need to replace carpet and even possibly walls or sub-floor. Musty odors could be hidden leaks. 

- Look at the condition of major items like siding and roof. They are large expenses and need to be calculated into your purchase price.

One final point is to not focus on paint or other items that are small cost to remedy. Some of my best deals just needed cleaning and paint. For me I look at speed to turn and put into service as a rental unit. Always get a property professionally inspected as an offer contingency!