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Old 08-30-2016, 05:15 PM
 
12 posts, read 12,868 times
Reputation: 11

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Quote:
Originally Posted by Scooby Snacks View Post
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.
It foreclosed in 2011. Investor has been sitting on it since. Not sure if there have been renters in it or not. The utilities were cut on. Noticed water pressure issues. Turned on 1 faucet and then another and saw a decrease. They had the HVAC condenser unit uninstalled. I had them reinstall it before the inspection. HVAC air temp was not as cool as the thermometer reading. Ran heat and it seemed to work.

Termite report just came back and termite activity is present.

As for crawlspace, it was partially filled in with dirt and sand. He stuck his body 3/4ths of the way through. I crawled in but heck I don't know what I'm looking at. Thanks for sharing your perspective on the idea of a "money pit".
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Old 08-30-2016, 06:35 PM
 
Location: Tucson for awhile longer
8,869 posts, read 16,280,653 times
Reputation: 29230
Most of the things you've listed are things I've repaired on houses I've rehabbed (once built in 1898, the other in 1927). A qualified home inspector should be able to give you ballpark figures on what repairs will cost (which could be vastly different, depending on where you live).

The only thing that will tell you if this is a viable project FOR YOU is accurate assessments of similar homes in the same neighborhood that have been brought up to modern standards and sold. If it's an up-and-coming area, there should be a lot of RE activity. What are people asking for similar homes? What are they GETTING when the home is actually sold? Accurate info of that type will provide you with a number that's the maximum amount you should spend on repairs and updates. Compare the repair estimates you get from an inspector to that number.

People who don't know your neighborhood and have never seen this property cannot possibly tell you if this is a good project to take on or not.
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Old 08-30-2016, 08:29 PM
 
551 posts, read 690,810 times
Reputation: 1033
OP, if this is your first house and you have no repair experience with houses of this age I strongly suggest you look elsewhere. Houses over 100 years old are full of surprises - there is always something not listed on the report lurking somewhere; something that may be listed as a 'cheap fix' but ends up being wildly expensive because the parts no longer exist and something has to be completely gutted or the parts no longer exist and it has to be a custom part.
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Old 08-30-2016, 10:37 PM
 
Location: Florida -
10,213 posts, read 14,789,658 times
Reputation: 21845
Quote:
Originally Posted by atlwy View Post
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
Even without looking at the Inspection Report (which I did), there are immediately about 5 red flags that would cause me a lot of concern.

1. First time home buyer - Not familiar with what you might be getting into or the cost of maintaining and upgrading a/this house.

2. 1920's house - Almost 100-years old. Unless the house has been substantially upgraded (which it doesn't appear to have been), it will need to be upgraded sooner or later.

3. Foreclosure - If the mortgage wasn't paid, it's highly unlikely anything else was done.

4. An Investor - Even if the party was a first-time investor, they obviously figured it wasn't worth the time and effort to make the investment pay-off.

5. 2011 - 5-years ago. Not long in terms of giving-up, but, quite a while in terms of going without regular maintenance, repairs and upgrades.

Beyond that, the obvious surface level repairs in the inspection report seem significant ... yet, probably don't cover the potential hidden problems (foundation, plumbing, electrical, etc).

Even if someone "gave" you this house, it is likely going to be a money pit. I think I would run, not walk - away from this one.
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Old 08-31-2016, 01:17 AM
 
11,025 posts, read 7,797,253 times
Reputation: 23702
Quote:
Originally Posted by Scooby Snacks View Post
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.

Whoa! The application of building codes is regulated locally; what your wife sees in Texas is totally irrelevant to Georgia, or wherever the subject property is. Many jurisdictions require projects to meet current codes if substantial renovation work is performed. A threshold commonly used is if the cost of the upgrades exceeds fifty percent of the property value the entire structure must comply with current standards.
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Old 08-31-2016, 07:05 AM
 
4,567 posts, read 10,625,503 times
Reputation: 6725
Of course its a money pit.

But if its a good price and you can fix things yourself for almost nothing, it might be a good buy.
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Old 08-31-2016, 09:17 AM
 
1,201 posts, read 1,217,966 times
Reputation: 2239
If you got it for free I would tear it down and start over. Otherwise all that wood rot isnt worth it. Probably has termites.
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Old 08-31-2016, 09:35 AM
 
Location: Columbia SC
14,225 posts, read 14,642,943 times
Reputation: 22092
Run Atlwy, Run.
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Old 08-31-2016, 09:41 AM
 
4,315 posts, read 3,977,154 times
Reputation: 7796
From reading all the replies, it appears the posters who believe it is profitable are knowledgeable and able to do work like this .


It appears the OP is not.


A huge difference when you buy a place like this and only count as an expense the materials.
Once one has to account for every single hour of labor because it is hired labor $$$$, it changes the big picture quite quickly.
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Old 08-31-2016, 09:49 AM
 
4,315 posts, read 3,977,154 times
Reputation: 7796
Quote:
Originally Posted by 399083453 View Post
Of course its a money pit.

But if its a good price and you can fix things yourself for almost nothing, it might be a good buy.


The OP said nothing that would give me the impression he could......."fix things himself for almost nothing "
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