All Forum Posts by: Shyam Panchal

I have some questions on the inspection.

1) I don't believe there is such a thing as an arc flash breaker, there is an arc fault breaker, I'm going to assume that's what he meant. Exactly what needs the AFCI breaker at the panel? is this run to outside, bathroom or kitchen? are there GFCI outlets in those locations? You may be fine.  

2) You said this is a single family home.  I'm guessing there is only one panel in the house.  If so this is main panel and grounds and neutrals can be wired to the same bus bar.  I know that's how the panel at my house is done.  Sub panel is a different story, I believe. Might be worth a call to a local electrician.

3) Can't offer much advice on that one.  I guess be prepared to replace it I'd budget between $1500-$2000.  It could go tomorrow or it may last another 10 years

4) Any idea what's causing the mold- what's the moisture source? Poor insulation in the wall at that area causing condensation or possibly a leaky drain or supply connection.  Could be a lot of others.  It would be good to understand what is happening there to better understand the possible costs.

5) Can the toilet and faucet simply be tightened? There should be blocking behind the shower faucet handle, so that could be a problem.  Is it accessible from the wall behind the shower, sometimes there is an access panel?

6) Roofs can be vented in a lot of ways, pod vents, ridge vents or gable vents, can you confirm none of them are in use.  Some roofs don't have venting, spray foam is installed in the roof joists and the roof will stay cold without venting.  The "no roof vents in attic" isn't enough info to work off of.  Adding vents could be a simple fix, and my guess is there maybe some venting there that the inspector didn't catch.

I'd get another opinion on some of those things before terminating.  My skepticism of home inspectors is probably showing a bit.  Overall I think they provide a really valuable service to buyers that are unfamiliar with the construction process but sometimes those reports come off as a little "doomsday".  Could be a great purchase that just needs a couple of issues addressed.

@Shyam Panchal 

1. Arc flash breakers. My house was built in 2008 and doesn't have arc flash breakers. When we finished the basement in 2012, the national electrical code mandated arc flash breakers for the new circuits. None of the houses I own as rentals have arc flash. It is totally safe and doesn't require retroactive update. If you wanted to update them, it is easy to do at the panel board. I work for one of the worlds two biggest arc flash circuit breaker manufacturers, so I fully understand this topic. I would not be concerned about this. This meets code.

2. You are not supposed to install two neutrals in the same busbar, but as long as both wires are tightly secured, there is no safety danger. Maybe you need a new busbar, but often there are open positions to move the wire too. This is not difficult to remedy.

3. Water heater was replaced, in 2009!. I have seen water heaters last 7 years and some last 30 years. In general you can get 15-20 years. Replacement is less than $1000 in most cases. I would not be very concerned with this and I would leave the water heater until it needs to be replaced. If you do ask for a concession, only half the cost at most is reasonable.

4. Mold near sinks or baths is fairly common because they are wet areas. You just need to figure out how the water is feeding the mold. It could be as simple as a bead of caulk on the counter top or you may need a new faucet. If this is a renovation, it is possible the mold is from prior to renovation. In that case just treat it with mold killer and inhibitor. That is less than $10.

5. Loose toilet could be as easy as tightening the bolts, but could be more serious if the floor flange is damaged. Bath water nozzle sounds like an easy fix and water handle in master shower is strange. I would ask the seller to have a plumber come fix all these issues and have the plumber look at the mold by the kitchen sink to determine if there is a leak causing it.

6. Roof vents are a major concern. Without venting, it will cut your roof life in half. It is very strange to have a house built in 1996 without venting, so I would make sure you are not missing something. It is possible there is a ridge vent. That is a cap at the top of the house that looks like ordinary shingles, but the entire top ridge of the roof is actually a vent. It is very discreet and possible the inspector missed it. Roof venting requires two things. Venting on top, but also under the soffit. Air comes in under the soffit and exhausts out the top. I would contact the city to see if permits were pulled for the roof, which they should have been. If the work was permitted, it would have been inspected and venting would have been checked. A city inspector may be willing to stop and look at it. If the work was not permitted, I would tell the seller to pull a permit and have it inspected as a condition of the sale. 

All these issues sound pretty common to me....your home inspector did a great job of what you paid them to do and that is scare you out of buying the house, so you bail, get another one, bail on that one, and they get 3 inspections out of you, before you understand these are homes.

The inspection report is often more of a status report these days, not a repairs list or a retrade tool....but see what you can get.

My thought is probably every home in the neighborhood will have the same issues if they were all built by the same builder.

None of these sound particularly like a deal killer to me.  Even if you have to fix some of it, do it and move on.

Not sure what part of Texas, but these days in many areas you should feel lucky just to get the contract.   Minor inspection issues are just the price you pay if you want to be an investor and you want to fix these things or you're just buying a house to live in.  

ArcFault while a good idea, was likely not code when the house was built and likely not code for existing homes. Plenty of people all over the US and all over the world don't have GFCI and Arc Fault. Certainly adds some safety, but likely not required code to bring this home up to new standards of construction today by even the strictest cities that do rental inspections....even the ArcFault rules have changed over time.

My guess is the neutrals are just need to be split up.  Remember an electrician wired this, approved it and city inspector signed off on it.  Pretty common find.  It is so common I think it must be acceptable in the electric trade.  Is it good idea to split them up, yes, but pretty normal to see this and have home inspectors call it out.

Water heaters...I've seen them last 6-7 years on the cheap ones, and some I've seen last 40 years.   Typically I see a lot get replaced about the 8-10 year old mark.  Budget for it or buy a home warranty or have the seller buy you a home warranty.  I wouldn't bail on a house because the water heater has aged....Just one of those capex you have to budget for.  HVAC, Water heaters, roofs....they all have a lifespan.

Did you test for mold?  How do you know it is not mildew?  If it is mold, is the toxic variety.   I would look at this and fix the problem so it doesn't continue.  Something probably leaking.  Maybe you need a new faucet.  If mold scares you, have it tested and remediated.  This doesn't surprise me at all, pretty common.  This is what should propel you to do quarterly inspections, so things like this don't get out of control by tenants who don't care and don't tell you.  Please tell me you've never been in a house, hotel room, camp shower, or school shower that didn't have a little black stuff growing in the grout.  Pretty sure I've even seen it in a hospital.

Loose toilets...buy a wrench...tighten the nuts.....if you're buying investment property you are now a handyman.   I keep adjustable wrench in my car....the rest of the plumbing I would fix, seal things up, secure things, connect things.  Maybe the seller or their trade will do this for you.

No roof vents?  Are there ridge vents, whirly birds, electric fans, solar fans?....nothing?...that surprises me a bit.   Either you leave it or get some installed...or get the roofer to come back out and install.

To me none of these are worth terminating over....otherwise you loose your option, inspection, and potentially appraisal money and your time.  That's easy $1000-$2000 right there that could fix most of these items....and what is to say you don't find the exact same issues in the next house.

Sorry to be a bit harsh and challenging...but to me there is no perfect house, no house without issues.  If you find one that is perfect, something will break sooner or later.

Some of this stuff is like cars.....do you fill up at 1/2 tank 1/4 tank or 1/8 tank or when the red light is on.....Safer to fill up at 1/2, but probably not that many people do that.  Do you immediately quit driving when the check engine light comes on, or do you stop the car, call a tow truck and take it to the dealer, or do you drive a week or two or a month and then take it to Shade Tree Tony to just let him turn the light out?   Do you change tires for safety 1/2 way thru the life or do you run them to they're bald.   Everyone is different, but I would also say even if you buy a brand new home, there are always things that the builder and home inspector disagree on...some things are standard practice and some things are gold standard.  

Just figure out what you and your tenants can live with or without and provide them a good safe environment to live.

beige is such a natural light killer but could help spread natural light by another color palette! yellow and lavender would be great options. light wood flooring and glossy paint finishes are good options to, it all depends on whats your budget and if this will affect rental capabilities

Hi @Shyam Panchal

Here in the greater ATL area it is pretty tough to find on-market properties in the good school districts that cash flow, especially with prices remaining inflated. My advice to you is two-fold.

1. Check out the South Lilburn/North Stone Mountain area. This gets you in the Parkview School District and you just might be able to cash flow (but don't expect $$$). South Douglasville also has some great schools and lower home prices. 

2. As @Jordan Burnett mentioned, sit tight. Not everyone who is currently deferring their mortgage payments will be able to catch back up when the time comes. Also, not everyone who is currently laid-off will be getting their jobs back. We have yet to see the true effects of this pandemic. That being said, I don't think it will take 12-18 months for deals to start popping up. I think it will be a rough winter for many (unless you're a savvy investor sitting on cash). Obviously, no one really knows what is going to happen but now is not the time to go out of your comfort zone or settle for a mediocre investment that ties up your cash. 

So just stick to your guns and keep looking until you find something that fits your criteria. If you ever have any questions or just want to chat about the Atlanta market, please feel free to message my anytime.