The decision to invest in real estate is a major one, which can come with a lot of serious costs even when everything goes well. If you are not careful, there may be property defects that can impose additional expenses and damage your ability to profit from your investment property. Here are seven property defects that can ruin your investment:
- Structural damage
- One potential issue that any property might have is structural damage from a previous owner, which was either not identified or repaired for some reason. This may include fire or smoke damage, water damage, or damage from termites or other pests. Without being repaired, this can endanger residents and harm the value of your property.
- Rodent or insect infestation
- Rodents and insects can also pose a serious problem to any investment property. Rats, mice, termites, carpenter ants, bed bugs, and other pests can not only make life uncomfortable for prospective buyers, they can also potentially damage your home, requiring costly repairs.
- Flooding and drainage problems
- You should check to make sure any investment property you want to buy does not have issues with flooding or drainage. If it does, you can expect to deal with water damage to your property, as well as problems with mold and mildew.
- Mold or mildew
- Speaking of, you should always be wary if you see a property that appears to have issues with mold or mildew. Not only can it be a sign of improper drainage or a leak, mold can become a persistent issue that harms the value of your property.
- Old or faulty HVAC
- Heating, ventilation, and air conditioning (HVAC) systems are considered an essential part of modern American homes, but many of these systems may be old, outdated, or faulty. If you find an investment property with old or malfunctioning HVAC, you may wind up footing the bill to repair or replace them.
- Toxic building materials
- An especially bad problem for some older buildings, it is possible you may encounter a property with toxic building materials. If a property was constructed with materials using lead, mercury, asbestos, or other toxic contaminants, it could make your property nearly unsellable until you remove the offending materials.
- Unlicensed additions or renovations
- Some people will hire unlicensed contractors to save money on additions or renovations, or worse, attempt to do these construction projects themselves. These unlicensed or DIY construction projects are often rife with code violations, and which may need costly repairs to fix.
At Stable Holdings, we assist our clients with a variety of services related to buying and selling real estate, including purchasing homes for cash. We have experience handling real estate financing, especially for developers and house flippers. If you are interested in selling your home for cash, please contact us at 516-548-6553, or visit our contact page.