Real estate investing can be quite lucrative, especially if you manage to buy the best available property. The only way to truly understand whether you have come across a quality home is to get an inspection. If you were considering skipping this step because it can be quite pricey, it is important that you think again. The reality is that having a home inspected can save you a great deal of money and here’s how.
Revealing extensive hidden damage on a potential investment property is all in a day’s work for an inspector. There are some issues, like mechanical failures and problems inside crawl spaces that the average person overlooks when inspecting property on their own. Failing to spot unseen problems ahead of time means that there will be repairs needed at a later date. In some cases, the problems are so extensive that they start to dip into your profits.
Mold is far more than a simple nuisance and it is not always easy to spot if you have no idea what you are looking for. Investment properties that are riddled with mold will end up being a huge financial headache as time progresses. Not only will you have to worry about paying for mold remediation, but any tenants who become sick as a result of mold exposure will have every right to sue you for damages.
One of the most expensive parts of a home is the roof. It can cause thousands of dollars to have them fixed in the event that they fall into a state of disrepair. The idea behind investing in property is to increase the amount of money you have. Taking several thousand dollars and using it to take care of a roof that is in poor shape is counterproductive. A high-quality inspector will head to the roof, check things out and let you know if there is anything you should be concerned with.
Sometimes, there are ways to alleviate an issue in the home without going the extra mile. For instance, having your roof patched is much cheaper than replacing the entire unit. An inspector can assess the situation and let you know if a temporary fix is acceptable. If they conclude it is, you will only have to pay a fraction of the cost to get things back in working order. There are many other instances when advice from an inspector can result in a cheaper service being ordered.
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In some cases, housing issues seem much more trivial than they actually are. Inspectors are willing to get their hands dirty in order to ensure that every nook and cranny of the property is covered. A great example of this would be a linoleum covered floor that has soft spots. You may not notice this right away, yet an inspector would hone in on it and diagnose the problem. What you assumed was a matter of buying cheap linoleum could possibly be a sign that the wood floor underneath is rotting.
You do not have a trained eye, so looking around at a home and seeing a few issues may lead you to believe that it is worth the investment. If an inspector looks at the place and notices that the cost of repairs is nearly exceeding the cost of the property as a whole, they will let you know this and you can begin looking for a better option.
If you are looking for a great investment opportunity, real estate may be perfect for you. With that said, it is important that you require an inspection of any property you are seriously considering. At this point, it should be strikingly obvious why this should be a priority.
Related: 5 Must-Have Features of an Income Property
D. More is a home improvement specialist and successful business owner. Check out his site, HouseRemodelingCenter.com for the best in home remodeling.
What are your experiences with inspections? Did they prove to save you money in the long-run? What tips would you give to investors going through an inspection?