Due diligence

[Michael Shoniker]

I've signed paperwork to purchase a duplex, and now in due diligence. Other than requesting financial info and having an inspection completed, any advice on other steps to take to for due diligence? Also, can anyone recommend an inspector for the Charlotte NC area?

[Michael Bowman]

Good morning Michael! 

You are on the right track with your Due diligence expectations. A home inspection and financial due diligence are keys when you are purchasing a home. Here are a few other things some of the investors we have worked with have had done: 

1. Radon inspection: radon can literally be anywhere at anytime. It is a huge contributor to cancer and is impossible to detect without testing. A radon test will cost you a couple hundred dollars, but will keep you free from liability. 

2. Termite inspection: Your basic home inspection does not include a WDIR (wood destroying insects report), so pay the extra $75-$100 to get a termite inspection. If this is going to be a long term investment for you, I would consider doing a termite bond on the home, where the termite company comes 4x/year to spray/inspect for termites. A lot of our investors do that. 

3. Survey: This is not a requirement, but it can be a great resource to making sure there aren't any encroachments on your land, easements, etc. More times than not the seller does not know the answers to these questions, so a survey can be quite informative. 

There are a lot of other inspections you can do (soil tests, etc), but the above is what most of the investors we work with do. 

In regards to a home inspector, we use 5 star home inspections. They have always done us right. Tell them Bowman Real Estate sent you! 

Also, if you need any assistance in running comps or speaking with a property manager, I would be glad to do so. We manage nearly 350 homes in and around the Charlotte MSA, and am always eager to meet with new property owners. Let me know how we can help! 

Good luck!