$40K potential septic repair on a $40K house…what to do?

Question

How often do septic tanks back up to where the owner is forced to do something about it, say with sewage backing up in to the yard or the basement?

I realize the answer is “it depends” but here is more information.

The house in question is 1950s built 2 / 1, 900 s.f. with septic tank in an area where 95% are connected to sewer. House is worth about $40K, it’s a C+ neighborhood. No DOTs or liens against the house. I’ve had the house for two years. No septic issues, and it’s a tight little house getting a 2% rent to value ratio without major tenant hassles.

I’ve had a mind to sell the property, but agents have told me that buyers using FHA loans will require a septic inspection (have not verified this). Calling around to different septic tank / sewer contractors, they are telling me that a septic tank that is 70 years old will almost certainly fail a septic inspection, which kills the prospects of most retail sales. That generally leaves selling to another investor as-is.

The septic contractors have told me to expect at least a $10K to $40K job to fix the issue if the worst happens, such as with backup into the yard or the basement. Those prices are estimates whether I fix or replace the current septic tank or connect to the sanitary sewer (about 30 ft away and downhill). That’s serious dough for a house worth only $40K. The city, county, and sewer company tell me they don’t help out with the cost, it’s all put on the homeowner.

I suppose what I have now is a failing tank that’s leaking, but otherwise not failing in the sense that it likely won’t come back up into the house. Or will it? It's working now and it's 70 years old, so maybe it will just continue...or am I teetering on the edge?

So, do I roll the dice and keep it, get the sludge cleaned out periodically, treat it with chemicals and what not, or, should I move on and sell it?

Kevin Martin · Answer

New septic around here runs about 10k for a traditional system. Any special septic systems start at 16k and go up from there...this is for a new system with nothing existing....I dont know the added cost to remove existing.

Larry Bowers · Answer

I want to close out this thread with my findings and recommendations from septic & sewer contractors and the local sewer company. One bid to connect to the sewer is $14,700 all in. But the guy giving me the bid says it is very unlikely I will have problems if I get the tank cleaned out regularly. There is a slight risk that a tank so old could be damaged and the lid or cleanouts would need replacing or repairing. He said he's never bid and did a sewer connection job for a house of this level before. It's probably just me worrying too much.

The biggest concern for this dwelling going forward would be tenants and foreign objects being flushed or using the correct type of laundry detergent.

Many might see the septic tank as an advantage avoiding a separate sewer bill that runs ~$40 - $50/month.

I am really surprised there isn't some type of subsidy or program to help out homeowners that meet certain criteria in this predicament. Maybe the local sewer district could give a cut rate sewer service for a number of years. After the $14,700 job, thereafter starts the sewer bill.

Larry Bowers · Answer

Re: "inspect your system before getting excited about it as it may be fine"I've been told by different, unconnected parties about the sewer and passing inspection. Much the same as the chance for snow in the forecast this week. NO WAY it will pass. It has to do with its age, from the 1950s, before baffle walls and multiple lid systems were in place, and then of course the wear and tear on the structure in that time. In any case, I will post my full story to this thread when I get through with all this, hopefully it will help others in this situation.

I am keeping calm and proceeding with getting bids to at least know if the cost will be $10K, or up to $40K. I should know something by the middle of next week. That's a wide range and could look at it as a capex with a 2 to 3 year payback with what the rents have been on it. It's soothing to think about it from that perspective.

Just like an old car that is driven "til the wheels fall off" this is the strategy I am considering if I keep it as a rental. I had a '95 Honda Civic that had over 300K miles on it...it just wouldn't die...and finally sold it for not much less than I paid for it. Maybe this tank is the same. The tenants would have to move out for sure when the tank dies though, hopefully not in winter.

Larry Bowers · Answer

Re: "keg of beer", while I don't know the condition of the leach field, I do feel like I am teetering on the edge.

Got a couple of guys coming out on Monday, so we'll see. I see you mention when to do a job like this. I understand not doing it in the winter with frozen ground or snow in the way. Why not dig in summer?

Don Meinke · Answer

get a firm quote on hooking up to city. Tenants should pay monthly bills. That old leeach fields days are numbered. All you need is a leaky toidy to wreck and drown the system. Or one big party that includes a keg of beer. You want to dig in fall time, not winter, or wet springs.

Lynnette E. · Answer

The septic tank has 2 lids, so there was a hole about 5 feet by 5 feet at one lid. But once they found that lid they knew the orientation of the tank they knew exactly where the other lid was and that hole was 3 feet by 3 feet.

There was no repairs needed for the tank. But they did damage both lids in the process and had to replace both lids.

I would say to inspect your system before getting excited about it as it may be fine. And if it is fine, then sell it fast while your inspection is still good!

If its not fine, hook up to the sewer, hope you can just fill the tank, and sell it before the sewer fees eat you alive!

I would invest what was needed to keep the asset viable and market it as new and improved or newly inspected.

Theresa Harris · Answer

$40K is high, I had one replaced for under $10K and I know of another installed new for about the same.

Most people buying a house with a septic will want it inspected. That is what happened with the one I replaced though I was the buyer and made the replacement a condition of the sale and had it professionally done prior to closing. So you could risk it though if you know for a fact there is a problem with it and don't disclose it, you might end up with problems.

Kevin Martin · Answer

@Larry Bowers always keep calm and carry on but get some hard quotes from septic guys before you lose your poo! ha 40k seems really high unless you have alot of poo to clean up.

Dylan Vargas · Answer

@Larry Bowers I just paid $7500 for a much larger septic tank. The leech field would have been another $2500 but I didn't need that replaced. Usually we are more expensive here in California but maybe not. When you go to sell the house the new septic adds value at least in our area as well as new sewer hook up. I dont think you will be able to "dodge a bullet" in your situation unless the septic passes inspection. If you keep the property and your cash flow is good its just the cost of having the house. I think you said you own the house free and clear and rents for %2 of value so it will not take too long to get your money back. Say 1/12 years at most?

Dylan Vargas · Answer

@Larry Bowers Welcome! I do not know how a new septic would cost 40k for this house you describe. 10k to 12k tops. There really would have to be some crazy land issues I guess. At any rate here in California you need an inspection on a septic to sell the house in most situations. I would have the septic pumped and inspected. You dont want sewage backing up as this will create more problems and money. Your county or city may not require sewer hook up, you have to check. The sewer hook up can also vary by street if they have the hook ups at the street or not. Your septic may be fine or maybe had the tank replaced 20 years ago. Go down to the permit department at your county and city and see if they have any information on the house. Good luck and keep us posted.

$40K potential septic repair on a $40K house…what to do?

$40K potential septic repair on a $40K house…what to do?

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