This video will give you some usually overlooked parts of a property inspection that can really come back to bite you.
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In this video we are going to cover some of the more advanced things you should look for when you are inspecting a property you are thinking about purchasing.
As a property management company we get management from a lot of investors who recently bought a new investment property. Over the past 30 years in the buisness our brokers and agents have seen everything.
Let’s do a mock inspection.
For the electrical, do you see two-prong or three-prong outlets? Two prong outlets, common in properties built in the 50s or earlier, are not grounded and may be a safety concern if there is a failure in the properties electrical system, such as a broken wire or a short.
Now look out, because a three-prong outlet is no guarantee of grounding. We have assumed management of several properties where previous owners installed three-prong outlets, but were still not grounded.
Also look out for the type of wiring in the property. Many of the home built in the mid 60’s and 70’s have single strand alumium wiring insetad of copper due to a sudden price jump. This type of wiring is more prone to failure, and is known for starting fires.
You need to hire an electrician for an hour to determine what you are buying.
Does the property have a pressure regulator valve? Many newer properties have them to maintain the water pressure within the pipes. We currently manage a small apartment property built in the 50s with galvanized pipes that had numerous leaks in the walls the first months we managed it. Turns out the water pressure was around 200 psi. A pressure level between 30-80 psi is considered normal in the industry.
So after the installation of a $1800 pressure regulator…the leaks have stopped in the building, but the new owner definitely found a hole in his wallet.
Note: A property inspector is not qualified to perform this test..you need a licensed plumber. And while you’re at it, have the plumber do a pressure test on the gas lines for the same reasons.
Currently building codes for mechanical components are very different from just 12 or 15 years ago. Most are minor things that will not effect the budget when you upgrade if you are purchasing a single family home or 4 plex.
But if you are purchasing a small apartment property.. . the expenses for replacing items like gas hot water heater T&P emergency drain lines, replumbing to raise the high of the hot water heaters, or gas valves, gas heaters etc. can get pretty high.
A home inspection may be the best $300 to $500 you ever spent. After the inspection have your agent assist you in getting estimates to make necessary repairs you are not going to complete yourself.