how to use inspection report

With the help of an Inspection Report of a property you are planning to buy, you get a good idea about the true condition of the property. And guess what? It even saves you money!

Let’s just assume you inspect a property on your own and analyze the rehab cost to be $10,000 per unit, based on the condition of property. But, after buying the property when you practically start doing the rehab, you discover many smaller works that need to be done. Now, the rehab cost goes above $15,000 per unit.

On the other hand, let’s assume you pay an inspector for a thorough inspection report. Then you calculate a way more precise rehab budget and the actual cost of rehab doesn’t go beyond the expected cost either! Why? Because you know the true condition of the property!

Now, if the property you are buying has multiple units, let’s say 20; you don’t want to have an inspection report of all the units. That would be costly! So, here’s how to analyze the overall condition of a building by inspecting the least number of units.

These include:

• The Down Unit – The one that is stripped to its bare bones.
• The Occupied Unit
• Recently Vacated Unit – One that requires rehab
• Recently “Turned” Unit

TIP: “Don’t read the complete Inspection Report, only read the summary!” Some of these reports are over hundreds of pages and you wouldn’t want to waste your time on that.

Lastly, it’s better you surround yourself with a complete team comprising an inspector, a contractor, property managers, and other vendors when you go for the inspection. They’ll be able to help you in making a well-informed and well-calculated decision.