Best real estate deals can be found in distressed properties. Distressed properties are the ones that need serious rehab and repair work. So, you can buy them in the cheaper prices, repair them and sell them at bigger prices. Distressed properties can include all types of properties, from single family homes to apartments.
Here is something that you need to remember. When you intend to buy a distress property, you may get into a position when you are required to make a quick decision. The seller would tell you that if you would buy the property, it would be in ‘as is’ condition; means the seller is not going to warrant anything. There can be many issues with such properties. Roof can be leaking, paints may be peeling from the walls, kitchen can be entirely missing, or main features may not be working at all. Furthermore, the seller may tell you this; “you have got very little time to make a decision because there is another buyer waiting in line, so no detailed inspection is allowed”.
Something that may seem worse is that distressed properties often have some hidden issues which normally do not show up during initial and quick inspection. So, you may think you are putting a gamble by paying for such properties. However, the basic knowhow about the common hidden issues will make it more of an anticipated purchase for you. Remember, you need to analyze things keeping the worst case scenario.
Here are the issues that can be found hidden in distressed properties.
Termites and carpenter ants
These wood eating beings can eat up the entire wood structure and sometimes this process can be completely hidden. If these ants are left to do what they do, you will get completely hollowed wood structure of your house after sometime. So, when you look into a distressed house while having an intention to buy, it is the first issues that you should take into the account.
An easy way to look for this issue is to punch the wooden areas with screwdriver. There would be a bigger dent if these insects would have eaten the wood from inside. Also, there would be small holes present in the wood. These holes can be seen if you look closely.
Water damage remains hidden if you do not check for it thoroughly. Bad news is that water is sneaky and it does not miss any leaking point without passing through it. Ultimately, it rots the structure even further. Easy way to check for this issue is to look under the sinks, the kitchen cabinets and basements.
The water damage can be caused due to sewer line damage or issue with plumbing.
Issues with electricity and gas lines
Issues with electricity or gas lines can be very dangerous. Since the property you are going to buy would have active connection of these utilities, it would be impossible to check for them; i.e. you would know where the gas is leaking or which break would trip. So, it is one of the few issues for which you do not have any option other than calling in a professional and asking for a fix.
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