This is the next article in my series discussing investing in Dayton area distressed properties and foreclosures. My last post looked at the choice of investing in foreclosures/distressed homes or “turnkey” ready properties. While there are many upsides to investing in troubled units, it is important that one not get in over their head. In this article I will go over how the process of inspecting troubled units, prior to purchase, differs from conventional properties. If you are considering investing in our area then contact me today to speak with a real estate agent.
Dayton investors should hire a contractor to assess distressed properties or foreclosures
The approach one takes in assessing troubled properties is likely to be different than that taken with more conventional ones. Buyers who are buying more conventional homes or multi-family units will typically have an inspection period after their offer has been accepted. During this period, a home inspector is hired, at the buyer’s expense, to go through the property and look for potential issues. If the inspection reveals “red flags” then the buyer may either back out of the deal or request that the seller fix the issues. It is important to understand, however, that the inspectors who conduct these inspections are not contractors and they do not give estimates as to the type of work to be performed.
It is typically not feasible to do a whole house inspection, which is the process I just described, on a distressed property or foreclosure. First, the utilities are typically not on in such buildings. As such, an inspector cannot inspect electrical fixtures, outlets, water systems, furnaces, etc. Also, since the inspectors are not contractors and provide no estimates, having a whole house inspection performed on a troubled unit can essentially amount to a waste of money on the buyer’s part. Instead, it is best to have the contractor, who you plan to have do the work of renovating the property, assess the property and let you know the amount of work needed as well as expected costs. I deal with a number of Dayton area investors and this is typically the approach we take when it comes to troubled properties.
Investors should choose a Dayton real estate agent who is experienced in dealing with distressed properties
There are several advantages to hiring a realtor who is experienced in transactions involving troubled properties. I have handled many such transactions from both the buyer and seller site. I have experience in dealing with contractors and going through the process typically involved with such properties. If you are considering investing in foreclosures or distressed properties, then contact me to speak with a Dayton real estate agent.
I also service the areas of Beavercreek, Centerville, Cincinnati, Clayton, Englewood, Oakwood, Fairborn, Harrison Township, Huber Heights, Kettering, Miami Township, Miamisburg, Riverside, Springboro, Trotwood, Vandalia, Washington Township, West Carrollton, and Xenia.
Note: Nothing in this article, or on this website should be construed as investment or financial advice. The opinions shared on this website are the personal, and not professional, opinion of the author and are not associated with Keller Williams Advantage. Any investment decisions should be made after consulting with a certified financial/investment professional.