Investing in residential real estate can be a lucrative venture, but it comes with its own set of challenges. One of the most critical steps is the initial home tour, where savvy investors can spot potential issues that could affect the property’s value and required renovations. Before you hire a home inspector, take a close look at these six important details to save time and money.
1. Foundation Cracks
Foundation Crack
Foundation issues are a major red flag. Look for visible cracks in the foundation, which could indicate serious structural problems. Small hairline cracks might not be a big deal, but large, horizontal, or step cracks can signify settling issues or even structural failure. Pay particular attention to cracks around doorways, windows, and exterior walls. If you spot any significant cracks, this could mean hefty repair costs down the line.
2. Weatherproofed Windows and Doors
Old Window
Windows and doors that aren’t properly weatherproofed can lead to water damage, drafts, and higher energy bills. Check the condition of the seals around windows and doors. Are there gaps or signs of moisture? Do the windows and doors open and close smoothly? Weatherproofing issues might seem minor, but they can add up in terms of repair costs and impact on the property’s overall comfort and efficiency.
3. Termite Infestations
Termite Damage
Termites can cause extensive damage to a property if left unchecked. Look for signs of termite infestations such as mud tubes along the foundation, hollow-sounding wood, and discarded wings near windowsills or doors. Termite damage isn’t always immediately visible, so take your time inspecting the basement, crawl spaces, and areas where wood is in contact with soil. Catching a termite problem early can save you from major repair expenses.
4. Structures Encroaching on Property Lines
Shed and Fence
When touring a potential investment, it’s crucial to know where the property lines are and ensure no structures encroach upon them. This includes fences, sheds, and even parts of the house itself. Encroachments can lead to legal disputes with neighbors and might require expensive adjustments or removals. Review the property’s survey and make sure all structures are within the legal boundaries.
5. Curling or Missing Roof Shingles
Damaged Shingles
The roof is one of the most important components of a house, protecting it from the elements. Check for curling, missing, or damaged shingles, which can be signs of an aging roof or potential water damage. A compromised roof can lead to leaks and other issues inside the home. If the roof appears to be in poor condition, you’ll need to budget for repair or replacement costs.
6. Aged Plumbing and Signs of Old Leaks
Ceiling Stain
Old plumbing systems can be a hidden money pit. Inspect the plumbing for signs of aging, such as corroded pipes or outdated materials like galvanized steel. Look for evidence of past leaks, such as water stains on ceilings, walls, or under sinks. These issues can indicate the need for significant plumbing repairs or replacements, impacting your overall investment.
Final Thoughts
Touring a potential investment property with a critical eye can save you from costly surprises later on. By paying attention to these six key details—foundation cracks, weatherproofed windows and doors, termite infestations, property line encroachments, roof condition, and aged plumbing—you’ll have a better understanding of the property’s condition and the expenses you might face.
Armed with this knowledge, you can make more informed decisions and negotiate better deals, ultimately ensuring a more successful investment.
FAQs
Q: How can I tell if a foundation crack is serious?
A: While hairline cracks are usually not serious, large horizontal or step cracks can indicate significant issues. If in doubt, consult a professional.
Q: What are the first signs of termite infestation?
A: Look for mud tubes along the foundation, hollow-sounding wood, and discarded wings near windowsills or doors.
Q: How do I check if windows and doors are properly weatherproofed?
A: Inspect the seals around windows and doors for gaps or signs of moisture, and ensure they open and close smoothly.
Q: Why is it important to check for property line encroachments?
A: Encroachments can lead to legal disputes and expensive adjustments. Always review the property’s survey for accurate boundaries.
Q: What should I look for in roof shingles?
A: Check for curling, missing, or damaged shingles, which can indicate an aging roof or potential water damage.
Q: What are signs of aged plumbing and old leaks?
A: Look for corroded pipes, outdated materials, and water stains on ceilings, walls, or under sinks.
Remember, catching these issues early can save you a lot of headaches and money in the long run. Happy house hunting!
6 Important Details for New Residential Investors to Look for When Touring Homes
