Buying Investment PropertyThe Ultimate Property Inspection Checklist for Real Estate Investors by Heba Baker December 22, 2018February 5, 2019 by Heba Baker December 22, 2018February 5, 2019The best investment property doesn’t only depend on a profitable market that promises high returns; the property’s condition is an important factor too. So here’s the ultimate property inspection checklist every investor needs.The Ultimate Property Inspection Checklist: What To Look Out ForIt’s important to take your time when doing an inspection; following a property inspection checklist can actually lead you to some of the most profitable properties. By first identifying the major and minor issues of the property, you can then decide on the next step accordingly.Let’s cover the general areas of inspection and then go more in detail. We’ll then talk more about the importance of getting a property inspection before buying a real estate investment and how our checklist helps.Related: What Investors Should Look for During a Home Inspection of a Fixer UpperGeneral Areas of InspectionFoundation or Structural Problems: This should be a big concern because the foundation of an income property generally affects every part of it. Fixing structural problems could be the costliest. Some signs of these issues are wall cracks, cracked tile/concrete floors, and off-level floors.Renovations and Additions: Ask if there have been any renovations or new additions to the building; these could be hiding problems with the investment property.Roof Problems: A damaged roof could spread to the rest of the property and cost you thousands of dollars in repairs. Some problems caused by a compromised roof are interior water damage, pest infestations, and inefficient insulation.Plumbing Problems: Check out the income property’s plumbing system. Plumbing problems could cause some long-term issues and serious damage, such as mold infestations.Mechanicals and Appliances: Check for any stickers indicating installation dates on home appliances. Any equipment nearing the end of its useful life is more likely to fail. This will end up with you either constantly spending money on rental repairs, or just buying new equipment; so more costs either way. Typically, water heaters last 10-15 years, furnaces last 15-30 years, central air conditioning units last around 20 years, refrigerators last 15-20 years, and washers and dryers last 10-15 years.Mold and Mildew Damage: This should be on your property inspection checklist especially if you’re inspecting a property in a wet climate. Mold and mildew damage could also result from a cracked foundation as we mentioned above. However, infestations usually start inside walls and won’t be visible upon first inspection. A professional inspector would be able to conduct the proper tests, but it’s still good to know what to look out for.Related: Real Estate Investing 101: 7 Unexpected Costs When Buying a HomeNow let’s list some specifics of the property inspection checklist pertaining to each room/part of the investment property.KitchenCabinets/drawers all open and close smoothlyCabinets/drawers show no signs of mold or decayOven is working and in good condition (door opens slowly, springs still work)Stove has functioning burnersThe sink faucet has good water pressureGarbage disposal runsRange hood fan and light work and underneath the hood is cleanDishwasher and microwave both work properly (springs still work)Countertops aren’t chipped/cracked/scratchedAll windows open and close properlyBathroomsNo leaks from any faucetsClean, stable, and functioning toiletNo poor draining from toilet/sink/tubFan ventilation worksTub/shower is in good condition (no chips or cracks/caulking in good condition)No broken tilesBedroomsCloset doors open and close easily (if the closets have doors)Windows open and close easilyFlooring and carpeting is in good condition (no cracked tiles/stained carpets/scratched hardwood)Basement/Crawl SpacesNo major cracks in the walls, especially large horizontal cracks (this could mean bigger foundation problems)No signs of insect, mold, or mildew damageProper insulation/ventilationRoofClean ventsNo molding/rotting shinglesChimney is in good condition (no cracks)ExteriorLawn is in good shape (green grass, maintained landscaping)Sturdy fenceSprinkler system is working properlyOutdoor lights all turn on and outdoor outlets all workGarage door opens and closes easilyWhy You Need to Get a Rental Property InspectionThis is such an important step in any real estate transaction, but especially for real estate investors looking to make a profitable investment. Buying an investment property has many costs associated with it. Why not try to minimize those costs as much as you possibly can? Why not take the extra step to make sure you’re actually investing in a solid property? That’s what a home inspection helps you to do.Here are the top reasons why every real estate investor should get a rental property inspection:Avoiding a Bad Deal: You can’t be 100% confident in the rental property if you haven’t taken the time to properly inspect it. A good deal could turn bad really quickly after property damage repair costs start eating into profits.Negotiating with Sellers: If you’ve inspected the property and have revealed multiple problems, you can use this to your advantage in negotiations. The seller is responsible for these damages. Therefore, you can ask the seller to either fix the damages or offer a lower price.Safer for Tenants: Ensuring a safe living space for your tenants is also very important. You don’t want to endanger your tenants from an undiscovered issue with the property.Enter Property Inspection ChecklistThese problems can all be avoided by simply using the property inspection checklist above. Everyone knows the basic things to look out for when searching for an investment property, but depending on memory isn’t the best. Having a thorough property inspection checklist will ensure that you’re actually making an offer on a good property.This doesn’t mean you shouldn’t hire a professional home inspector, because it’s recommended that you do. However, this is a quick list to remind you of what to look for when inspecting a house for the first time. You shouldn’t have to pay the property inspection costs (which range from $500-$1000) if you can spot a deal-breaker on your own with our checklist.Related: Why You Should Get a Home Inspection Before Investing in PropertySumming It All Up The whole point of this property inspection checklist is to make you a more confident real estate investor. Many investors have fallen victim to real estate investment scams due to an inadequate property inspection. Making the right investment starts with having the right tools and resources. Use our property inspection checklist to gain some more knowledge on the condition and true value of the next rental property you’re interested in.Haven’t found a property to invest in yet? Start searching with Mashvisor now! To learn more about how we will help you make faster and smarter real estate investment decisions, click here. Start Your Investment Property Search! START FREE TRIAL Home Inspection 0FacebookTwitterGoogle +PinterestLinkedin Heba BakerHeba is Content Writer at Mashvisor with a BA in Business Administration. Most of all, she enjoys writing about the constantly changing markets in the US real estate industry. If not writing, Heba is exploring and learning. Previous Post Buy the Best Airbnb Income Properties With Heat Map Analysis Next Post Buying a Rental Property with Cash: A Smart or Terrible Move? Related Posts How to spot a good real estate investment deal? Investing in Vacation Homes: Top 14 Expert Tips When to Invest in Real Estate: 5 Signs It’s Time Learn How to Find Positive Geared Properties in the Real Estate Market How to Go About Buying a House for Rental Purposes? Can I Buy HUD Homes for Sale as Investment Properties? Real Estate Basics: Buying a Vacation Rental Investment Why Mashvisor Is the Best Real Estate Website in the US Is Savannah Real Estate a Smart Investment Choice in 2018? 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