Is this a money pit? Please review home inspection report (insurance, comparable)

[thaifood]

Also, repairing electrical and plumbing might mean you have to abide by new codes and completely replace them. Gut job.

[David A Stone]

Originally Posted by atlwy

Hi guys,

i'm a first time home buyer under contract on a 1920s house. It was a foreclosure purchased by an investor in 2011.

Can you please my home inspection report and let me know if this is a money pit?

How much do you think it will cost me to get these repairs done? I'm a frugal single guy. Could do some of the remodeling myself. Don't need super high end appliances.

https://www.scribd.com/document/3225...pection-report

Thanks in advance

How valuable is the lot that the house sits on.


Valuation of lot-demolition expense is your starting point when considering profit.


I'm surprised that wasn't a condemned house.

[Jkgourmet]

Further details here: //www.city-data.com/forum/atlan...oplestown.html

it's Atlanta.

OP, I'm unable to access the full inspection report, but based on your other thread, you can't afford thebadly needed repairs on this house. Run away.

[convextech]

Originally Posted by rational1

> Every single itemization on that report says it needs repair.

Well, umm, of course. The inspector is not going to spend a lot of time describing things that are OK.

Every inspection report I've seen has an itemization of all things they check, and at least a blurb that says something positive if nothing is wrong. My point is, not a single thing about this house has anything going for it.

[animalcrazy]

Yes it looks like a money pit, but did you do your home work? Do you know what the houses in top shape are selling for in the area? Did you buy right and are you willing to spend a lot of your free time working on projects? Are you also willing to stay for a long long time?

We bought a money pit and we are up to about $130k in repairs and decades of working on our house. It's a way of life for us and our definition of fun. The house if full of 10911 charm and that is priceless for us. I remember the days of waking up to birds sitting on our ceiling fan in the bedroom, and wind that would come in and rattle the pocket doors. It was a long journey and not for the I want it now crowd.

We bought right when we only paid 80k. A house that was recently rehabbed by an investor with less square footage and not as high end as ours just sold for 469k around the corner. I think we made the right decision

Go into this with as much knowledge as possible and make sure the numbers work in your favor. I'm wondering if the investor decided that the numbers weren't right and walked away?

[convextech]

Originally Posted by animalcrazy

I remember the days of waking up to birds sitting on our ceiling fan in the bedroom
...
A house that was recently rehabbed by an investor with less square footage and not as high end as ours just sold for 469k around the corner. I think we made the right decision
...
I'm wondering if the investor decided that the numbers weren't right and walked away?

That sounds like fun in a way. What an adventure! And yes, for the right people it certainly was a good decision.

I have an acquaintance that "invested" in a home he thought could rent out to Section 8 (think slumlord mentality), but the condition of the house versus the requirements by the government woke him up.

[Scooby Snacks]

Originally Posted by thaifood

Also, repairing electrical and plumbing might mean you have to abide by new codes and completely replace them. Gut job.

Incorrect. The electrical codes and plumbing codes of a 1920s house have to be up to code with the electrical codes and building codes of a home constructed in the 1920s, not 2016. (My wife is an inspector and has discussed the standards with me in detail. This standard is valid for all 50 states, if I remember right). Most home inspection standards are the same for all states because they are national and even international building codes. Thus, OP does not have to entirely replace the electrical and plumbing; only whatever he/she deems unacceptable.

I am mystified as to why OP would get an inspection on a foreclosure without paying to get the utilities turned on first. Checking the function of utilities is ESSENTIAL, and in a foreclosure situation, the buyer typically must pay for them to be turned on, not the seller. Thus, you are still in the dark about a lot of what's going on.

Looking at the pics and reading the report, the home seems like it's in decent shape for a house that's nearly 100 years old. Sure, you'll have some wood damage, possibly a leaky roof, maybe some water damage, (but you can't really be sure if leaking is still a problem with the water turned off) some loose nails and boards here and there, etc. . . You can't expect perfection from a 100 year old used house, and you shouldn't. If I were you, I would get the utilities turned on, have the utility related systems reinspected, and get a termite inspection, if you haven't had one done already.

I'm also quite surprised that your inspector didn't climb the roof NOR look under the crawl space and inspect them. He didn't get a close look at two very important structures of the home. Difficulty with access can be a problem in a few cases, but my wife does everything in her power to access both structures via telescoping ladders and other tools. She wants buyers to get their money's worth.

As for the money pit angle, whether the home is worth it to you is purely a personal decision. Even if the house is falling down around your ears, some buyers want that. They are handy, want to renovate a house themselves, and are interested in personalizing a home to suit their tastes. Other buyers want a home in perfect condition (new construction is the best choice for them). The condition that you're willing to accept is up to you. Just remember, you can't have it all. If it's super cheap, there's a reason.

[ea1420]

I would say yes, unless it's being sold at a huge discount, and it's in a top notch area.

There is easily 100K's worth of work in that house, and there could be a lot more depending on the foundation. The biggest problem that I see is that a lot of the items noted on the report are things that need to be done immediately, because they are either safety hazards or delaying is going to cost you even more money.

So the real question is do you have the money to make the repairs? If you do and it makes financial sense then go for it. But, if you don't have the money then don't do it. Because otherwise it really will feel like a huge money pit.

[Diana Holbrook]

Other than the siding, plumbing, electrical and roofing, it seems to be in pretty good shape!

This is a home to renovate. I would buy this only if you want to do a substantial remodel. Some of these things can't be ignored.

[chet everett]

Originally Posted by atlwy

Hi guys,

i'm a first time home buyer under contract on a 1920s house. It was a foreclosure purchased by an investor in 2011.

Can you please my home inspection report and let me know if this is a money pit?

How much do you think it will cost me to get these repairs done? I'm a frugal single guy. Could do some of the remodeling myself. Don't need super high end appliances.

https://www.scribd.com/document/3225...pection-report

Thanks in advance

I have seen hundreds of inspection reports and the items listed on this do not strike me as so excessive or serious as to cause me to worry that this home is going to be too costly for a normal home-owner to consider purchasing. Assuming that it is priced in a way that reflects the obvious issues with conditions this may be an a good value. Things like "window bars" are not an automatic sign that this is an unsafe area!

Frankly, if this home was currently inhabited it would very likely look a bit less intimidating -- the relative prominence of things like dirty / worn kitchen sink and bathroom areas looks more like neglect than anything that is a true concern of safety. The fact that an investor owned it for five years and it is currently a foreclosure goes a long to explaining why it is not looking up to snuff.

It is further impossible to attempt to say that the items on the inspection report would require any specific spending to address -- while it would be wise to do things to make the home more weather-tight & better insulated NOBODY is going to require that! Even when it comes to dealing with issues like peeling exterior paint / damaged siding this is not like having a home in a newer area where an HOA forces folks to address such things. If the home buyer is handy and /or has a budget that includes some cash for repairs updates of even just a few thousand dollars (which all experts is necessary even with a brand new house...) this might be a good sort of starter home. 5 Expenses to Anticipate as a New Home Owner

If the OP would share the price of this home and that of similar sized homes of approximately the same age it is almost certainly true that this home is discounted because of it being vacant and needing some TLC.

Generally speaking the things that make a home a true money pit include issues with the plumbing / septic and for the most part there are NO "smoking guns" on the report. The other major areas of concern with homes being a "money pit" are issues with the overall framing and foundation. The report seems to indicate, in the most general of ways, that any cracks in the foundation appear consistent with those that probably happened due to the normal curing process and ought only be monitored. When it comes to framing the report mentions only that there is some slope to some of the floors and does not address why that may have happened, my gut says it is probably due to lack of quality workmanship in the original flooring / sub-flooring / floor joists and not an indication of anything that is unfixable, though a more thorough investigation should be done if the buyer is able to find a qualified expert...