Purchasing an investment property is an exciting venture. As an investor, your concern is probably whether the property will be a good buy and how profitable a given residential or commercial building may be over time. It can be difficult to objectively assess the property for flaws or identify hidden issues that could turn out to be expensive. After all, it doesn’t take too many unplanned repairs to completely eat up the profit at a location for a number of years.
A professional home inspector is trained to find these problems, and can help save you a lot of money and frustration. Let’s take a closer look at a few of the areas covered in an investment property inspection and how hidden issues can quickly add significant repair costs to what might seem like a good property.
Starting from the bottom, the foundation is a critical part of every building. Problems with a foundation may be due to improper design or construction, or may be caused by erosion, ground settling or other external situations. Some foundation problems are easy to spot, assuming that you can easily access the basement or crawlspace. Other foundation problems, however, require specialized training or tools to identify.
Plumbing repairs can be expensive, as well, especially damages caused by ruptured, leaking or clogged pipes. While some problems are obvious and simple to identify, others will only be noticed by a trained eye. Major plumbing repairs or improvements can easily cost thousands of dollars, so it pays to know in advance if there will be problems with the plumbing.
Electrical demand has increased considerably in the past few decades. Buildings that are more than a few years old may require upgrades to the service panel and wiring to accommodate the demands of modern renters. Homes that are more than several decades old may also have outdated wiring that needs to be replaced to comply with safety standards and modern wiring rules.
Heating and cooling systems should be carefully inspected by a professional to be sure that all components are in good working condition. You need a system that functions adequately and will heat or cool the home or commercial space appropriately. If a furnace or air conditioner is older, it may need expensive repairs or even replacement, and can end up costing you a significant sum.
Finally, roofs should be thoroughly inspected to look for signs of damage, wear or other problems. A good roof inspection requires access to both the roof and the attic to look for any problems from both above and below. You don’t want to replace a roof the first winter that you own the building because it caves in under the weight of snow and ice or that leaks and causes water damage, and a professional inspector can look for signs of issues that could become expensive later on.
A professional home inspector can identify many of the expensive problems that may be hidden during a casual property tour. Once you have a full report from your inspector, you can review the issues found and discuss them with the seller, working to address problems before you close on your purchase, or withdraw your offer. It’s much better to know about these issues in advance rather than ending up surprised months down the road with expensive repair bills.
Center Grove Real Estate Inspections LLC provides trustworthy property inspection services to real estate investors throughout the Indianapolis area. Contact us at 317-313-5362 today to learn more or to schedule an inspection appointment.