There is a saying – “experience is the best teacher.” Well, this certainly holds true with real estate as well. Whether you learn from your own experience or from that of friends and other investors. There are constant lessons that we can use to help avoid costly pitfalls.
Today I want to talk about a specific experience!
When Buying an Old Home Look Out for This!
One of my buddies bought a home recently in the Chicago area. Like many other homes in the area, it is older. Built in the 40’s I believe.
When it comes to older homes there are additional things to pay mind to that you don’t have as much concern for when dealing with newer construction.
Really anything built prior to the mid-1980’s is when I put my radar on high alert for items such as outdated electrical, breaker panels, etc. etc.
Sewage Piping Condition
An old home means old pipes. Old pipes have a higher chance of having a leak, being busted or in need of replacement.
Unfortunately, this was the case for the sewage piping in the home my friend bought. The sewage line is compromised in a couple locations.
The plumbing company will need to dig out the line and do some replacement. It is not a cheap fix.
The question is – could he have seen this coming upon inspection? I mean, how does one check a sewer line?
Technology my friends! We are so spoiled today with all the tools we have compared to home buyers and investors of the past.
If you are buying a much older home, it may be worth the money to have a plumber stick a camera down the line to check out the integrity of the sewer line. Have to love those snake cams!
Bonus: Polyethylene Piping
There are several types of piping used inside the home; copper, plastic and so on.
The one I want to point out is: Polyethylene piping.
It varies by area, but in Florida poly was pretty popular in many homes built prior to the 2000’s. Problem is nearly all insurance companies in the state will not grant insurance on a home with poly piping. It has a track record of leaking apparently that bad.
If a home has poly piping, be sure to get a quote on what it will cost to replace and factor it into your offer or see if the seller is willing to have it replace.
If you enjoy my rental property investing tips, then you will love the book:
I walk you step-by-step through finding, buying and renting out a rental property. The book is your personal mentor!
Be sure to use the property calculator so you can run the numbers and buy right!