Property Vacant for 2 Years, What are Potential Problems w/ Home?

Question

I am hoping that some of you may be able to help me avoid potential pitfalls when evaluating the possible flip of a home that has been sitting vacant for 2 years. The property is in Austin, Texas, is in a nice neighborhood, and from the exterior and peaking through the windows, appears to be in pretty good shape. Any advice on specifics to look at, i.e. foundation, etc., that may have premature wear because of the vacancy would be greatly appreciated.

Thank you!

Brad

Thank you!

Brad

Jay Hinrichs · Answer

foundation  huge issue in most of Texas no matter if house is vacant or not you can check that from outside usually.

1.  burst pipes  does it get cold enough to freeze

2. mold

3. animal fece's

4. vandalism damage

these are the common ones when I have bought courthouse steps houses I could not get into .. but there was very few houses I could not get into.. if they were vacant we simply broke in

Neil McCulloch · Answer

1. Plumbing - after 2 years the traps will have all dried out which can lead to problems with critters getting in the pipes as well. Don't forget about the condensation drain from the air conditioner.

2.  Critters - all kinds in the walls/ attic/ crawl space. Everywhere there is insulation you will find evidence.  Ducts and Vents are good hiding places.

3. Foundation.  We went from too dry to too wet in the Austin area.  This probably caused some shifting with the foundations, but that is fixable.

4. Taxes and Liens.  The property may have been abandoned and someone left without paying for everything.  Make sure you get a good title search.

5. Electrical - should be good, but insects may have built in panel and outlets or fixtures.  Pull plates and covers off all electrical and check.  It should not look dusty inside them.

Brad Denkhaus · Answer

Thank you @Aaron Gordy.

Aaron Gordy · Answer

@Brad Denkhaus

For foundation concerns, I would look at the exterior walls to look for cracks. Foundation issues doesn't scare me because there many houses have them in Central Texas due to the weather, the ground, etc. I would be concerned about the plumbing issues that might come into play when repairing the foundation. It might already have plumbing problems. I am assuming that it has a concrete foundation. If it has pier and beam then it becomes a bit easier to repair the plumbing problems.  Foundation issues equals huge pricing discounts due to risk of so many unknowns. Sometimes it makes sense and sometimes it doesn't.

In addition to what every one else has said I would also consider the holding time frame for remodeling/flipping it. Since Austin is doing very well good contractors are in demand. A typical 4 month job that I have been working on has turned into a 6 month job due to the shortage of good subs. It was a house flip and a detached garage conversion which involved city permits which was very onerous. If you need to pull city permits expect another time delay.

All the time delays can be costly if one is going hard money or some other expensive route.

If you want me to check out the property with you then pm me. I have been doing flips for years.

Christina Kovacs · Answer

Since you don't have access to the interior I would check the following:

1. Roof

2. Plumbing Lines and Septic Inspection - For $250 approx. you can have it inspected with a camera through the clean out.

3. Electrical Panel - Sometimes these are located outside you can you take the panel off to see if the breakers and wire are up to code.

4. Foundation - Serious cracks from the ground settling our shifting.

5. Talk to the Neighbors - Small conversation can sometimes lead to a lot of information about not only the neighborhood but the previous owners and any issues they had with the home in the past.

Stephen Preston · Answer

Hi @Brad Denkhaus

Is the property you are buying being listed at a tax sale auction or is it a foreclosure?

As a general rule of thumb I do not buy vacant properties from Tax Sales as there are just too many variables when you can't actually walk through and get a good look inside. I want to make sure the properties I am buying at auction are lived in so I know they are at least habitable.

Just my opinion, goodluck!

Brad Denkhaus · Answer

Thank you for the responses.

Colton Cook · Answer

@Jay Hinrichs,

Not to mention you are required to use contractors certified in the removal of both. Be sure to know what the pipes are wrapped in, what the floor tiles are made of, what the attic and wall insulation are made of, not to mention. However, just research the year it was built in and ask some very pointed questions. If you wanna save money, hire a building inspector. $450 well spent.

I just cancelled a buy of a 7,000 square foot two story building built in 1918 with the original cornerstone intact. I was hoping we were safe since asbestos was not widely used at that time. I didn't even consider that it had been remodeled since then, circa the 70s... Walked in, sure enough loose fill asbestos was laying all over the upstairs floor, taking a 120k total investment to possibly a 160k+ reno... Stuff till haunts us to this day.

My opinion: Hire an inspector. Let him take the liability for you purchasing the project. You'll get a better idea of what reno you need to do anyhow. There is a good chance you'll NEVER have to deal with any of this stuff, just think you deserve a warning.

Jay Hinrichs · Answer

@Colton Cook  I just paid 21k to remove asbestos floor tile from a home I demo'd  the states are on us like stink on poop....

I can see this and lead paint remediation causing properties in low value areas of the country to become virtually worthless..

unintended consequence's of the govmit protecting us..  if you think about a lot of the lower end areas or urban cores around the major metro mid west and rust belt cities were properties trade as is for 2 to 20k... if you have to deal with these two issues and it cost a bunch .. the properties will be worthless.. banks wont take them back they will go for tax's to the country then on the county land rolls only to rot away... OK off my soap box.. but you better believe its in the front of our thought process instead of OH we will just deal with it.

Property Vacant for 2 Years, What are Potential Problems w/ Home?

Most Popular Reply