Need advise for mold in basement of a potentail SFH purchase

[Jack Srimani]

Hi,
I have seen a single family house that is in a good neighborhood. Curently this house is bank owned. I am planning to buy this SFH for rental investment. For most part the house looks good with cosmetic upgrade. There is possibility of price appreciation in the future. This is a three bedroom and two bath with full basement house with nice backyard. Currently the asking price is 65000 which I think is still high with the current market condition and the fact that the basement has some degree of mold damage.

Here are my questions for your advise:

1) The mold damage is at the bottom of the basement for about a height of one to one half foot. My realtor told me that a contractor needs to come and cut the lower portion of dry wall and put new dry wall. He sounded the cost of dry wall and mold remediation will be 4000. My question is does this estimate seem close to real value?

2) How does one know the source of mold formation so that after remediation there will not be recurrence of the problem

3) Should I stay away from this kind of property due to mold formation.

What price should this SFH be bought to have cash flow. The average comparable rent is 900 dollars.

Thanks.

[J Scott]

Originally posted by Jack Srimani:

I think I will move on to find next house.

You should get a couple contractors out to look at it and give you bids...at very least you'll learn something new about mold remediation!