Currently looking at a 8+ month vacant, 2-story, condo 1200 sqft in California with major mold issues. All 2.5 bathrooms (no windows, just broken fans) have 40% of visible mold, meaning the 40% of the room I can see mold hence 60% I probably can't see (inside walls, floors, non visible on walls). The garage's interior roof has a 5'x5' torn, shredded dry wall ceiling and exposed plywood with dampness where the upstair's bathroom toilet is located. Lots of urine stains from pets which the smell caused us to depart after 2 min (I worked at a animal shelter, been in a room with 40+ dead cats but the AC was working, this condo was up there being vacant min 8 months)
My agent's rehab estimate is $40K, I'm overshooting to cover bad pipes, interior beams need to be cut out and replaced, new hvac, etc so $75K. Ad & selling agent states strict $285K listed price (indentical comparable sold at $315K) I'm going to offer $185K cash, and tap my uncle's personal $100K loan of 2% + prime (at 4.6% currently) variable 4x a year adjusting. This personal loan would hopefully over cover remediation of the mold and complete remodel of 75% of the interior: new 2.5 baths, kitchen, flooring, walls, ceilings, doors, etc.
My concerns are if my rehab costs of $75k is enough. Reading this thread has taught me that remediation requires sealing up EVERYTHING but in a condo that has 1 side that is shares walls with next door neighbor (where all the mold sits because the pipes are located between the units) we could be spreading the mold to the neighbor which is a real concern since I can't control the other side of the wall we are removing, tearing, or sealing.
If it was $100K or even $120K cost to rehab , I'd still can:
1. rent will positive cash flow within 15 months 2. spent $285-300K for a investment at market value of $315K.
The factors of uncontrollable remediation pushes this investment in 30% more risky. Share your serious, extreme mold stories