We talked earlier about the four critical areas of rehab when you’re considering a foreclosure purchase for your income property portfolio. It’s good to be at least somewhat aware of these four areas. After all, accurate estimates could be the key to profitability.
Most foreclosures recommended by Empowered Investor Network are not going to have major trouble in these areas but it’s a good idea to at least be aware of the possibility.
Roof – The primary areas for concern are wood rot, termite damage, and loose shingles. Also check the ceiling for water stains, holes, or discolorations. This seemingly innocuous evidence could be hiding BIG problems underneath.
Structure – Walk around the outside of the property looking for cracks in the foundation or, worse, an entire portion of the house sagging. Structural problems can mean big bucks, maybe even into the tens of thousands of dollars to fix. It might be a deal killer.
Plumbing – Inside the house, look under the sinks in the kitchen and bathrooms. Once again, you’re checking for evidence of water damage. Outside, pay attention to large trees growing near the house. An intrusive root system could have you writing a large check for plumbing repairs in the future.
Electrical – Pay a good electrician to check out the house and consider it money well spent. Besides being potentially dangerous, there’s nothing more frustrating than a house with faulty wiring.
Slow down during your mad rush to buy a great foreclosure and make sure to thoroughly inspect all four of these areas during your preview of the property. As we’ve said before, it’s the attention paid to details like these that can make the difference between cash flow heaven and money pit purgatory.
Choose wisely.
The Platinum Team
