Port Saint Lucie Florida

[Charles Roldan]

Hi, any investors making deals happen in Port Saint Lucie/Treasure Coast area? If so what is your strategy (BuyN'Hold, Flips) and how's its going? And has anyone have experience with buying a Chinese drywall home?

[Walt Payne]

Originally posted by @Sandra Gibson:

They need to be gutted to the studs. All wiring, plumbing, kitchen, bath, hot water heater, air conditioner, lights, fans, appliances need to be replaced. The chinese drywall is so corrosive that is dissolves metals. You can't even park a car in the garage. 

What are you basing this statement upon? The original lawsuits had a ruling by a judge that the above needed to be done. Since then CPSC, EPA and several major builder's organizations have all agreed that those measures are excessive and often unnecessary. Air conditioners are left at a maybe, to be inspected. I think we have been at better than 50% being good. Plumbing is a maybe depending on condition, but is not usually needed unless there would be a sprinkler system (fire sprinklers, not irrigation type). Electrical wiring for all but safety systems is not necessary, the findings were that corrosion occurs to a small degree on the outside but not to a degree to effect safety or performance. Outlets, switches, relays, and circuit breakers are necessary to replace. Hot water heaters, depends on where they are located, but not normally needing to be replaced. Appliances, haven't seen any issues myself because none of the ones I have done had any .... that may be indicative, may not. Lights and fans, they have been fine but then I never looked close because we replace those in a flip anyway. 

The current guidelines are pretty loosely worded. To me that does leave room for the shysters to do an incomplete or improper job. But it also gives leeway to the honest people to do what is needed to do the job right without throwing out the baby with the bath water.

BTW, you do know that the "Chinese Drywall" problem encompasses several brands, and that the amount of sulfuric acid off-gassing varies not only by brand, but vintage. That is why the guidelines have such leeway. We allow for the possibility of ALL of those things needing to be replaced, except wiring, when bidding on a CDW property. We have never come close to doing that, so far.