Inspection Advice for Home in Raytown, MO (KC) 64133

[Ty Murphy]

I am looking to make my first rental home purchase, and I just got the inspection back for this 2 bed/1 bath home that I have under contract. The home is about 70 years old so I was expecting a rough report, but the major concerns noted by the inspector relate to the foundation and crawl space. I am hoping to get some advice here as to whether I negotiate with the seller to get these items addressed/remediated or if I run. Here is the verbiage of the 2 major items from the report:

"Support columns were found to be deficient as follows: The support column(s) was/were out of plumb. Leaning columns are
weakened and vulnerable to further leaning. The support column(s) was/were not properly installed and secured. Settled
footings had caused gaps at the floor joists. Repair or improvement is recommended. Full evaluation of this condition is
beyond the scope of this inspection. Consult a general contractor or professional engineer for a complete evaluation of this
condition. Repairs should be performed as deemed necessary."

"Indications of active water entry in crawlspace. standing water observed. Sump pump appears pit has no means of retaining soil and silt. Pump is surrounded by silt. Could not find sump pump outlet. Water leakage was observed around the main drain stack drain plug at crawl space."

"The growth of mold was suspected crawl space. Mold is often the result of continual or regular moisture on building
materials. Identification of mold and risk assessment is beyond the scope of this visual inspection. It is recommended that the
home be evaluated by an Industrial Hygienist or other mold specialist to determine the necessary procedure for proper clean
up."

Thanks!

[Bill Kennedy]

It depends, what price you have it under contract for. When you have a property under contract and you’re getting your inspections done these are the types of problems that the average person will not want to deal with. If the price is in line with your comps then you will need to renegotiate. The price of the property may already be reduced to compensate for these repairs. 

Run your numbers and see how much room you have if the property cash flows after repairs then you’re good. 

I would be upfront with them and ask them if they were aware of these issues and if they have any estimates already for the cost to repair. To pursue this further you will need to get your own estimates done so you will know if you need to renegotiate or not. 

Real Estate Investors really are problem solvers, they have a problem and you are going to help them solve it.