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Home>Remodeling>When Not To Renovate |
When Not To RenovateThe Top Four Homes To Walk Away FromWith so much written on how to renovate and so many new investors
starting up every day, we thought it would be helpful to offer some
suggestions on some of the projects many investors will want to avoid. #1 Damp Basements In general avoid homes with damp basements unless you are clear about the source of the water penetration. Sometimes damp in a basement can be easily remedied by installing proper gutters, downspouts and even French drains around the home. However, if the source of damp is from rising ground water tables beneath the home there is very little that can be done to prevent it. A sump pump can alleviate the problem to some extent but with increasing concerns over mold we'd recommend being very cautious around damp basements. #2 Structural Damage
#3 Bad Locations It may seem obvious but this one can't be avoided. Many novice investors are attracted to homes in poor condition in poor locations because they seem such a bargain compared to other homes in the area. The truth is many of these properties may be overpriced based upon their location alone. When it comes to remodeling a home the biggest factor in determining the ultimate market value of the property after renovations will be its location. You can make a terrible house gorgeous but you can't change its location. A run-down property by a train line will still be by the train line after it's fixed up. Stay away from properties in bad locations; they take longer to sell and they appreciate less that equivalent properties in better locations. #4 Insect Damage Minor insect infestations can be treated relatively easily and may not be expensive to repair. However, the problem with insect damage from Termites and Carpenter Ants is that most of the damage is done below the surface of the wood and out of sight. Because of this, the extent of the damage may not be known until you start tearing down walls and ceilings and by then it may be too late.
Having a thorough pest inspection of any potential investment is wise as is becoming familiar with the tell-tale signs of infestations yourself. If you can't determine how extensive any insect damage is, you may want to give the property a pass and move on to the next one. How To Spot The Problem Properties The more you look at homes (especially if you go around homes with a licensed inspector) the more familiar you will become with the tell-tale signs that the property could be one to avoid. Wise investors also take time to educate themselves on what to look for. There is a wealth of information freely available on the Internet to help you get started. Taking On The Challenge Even the problem properties can turn a healthy profit provided you budget for the full cost of repairs up-front and you are able to negotiate a purchase price that has room for you to make a profit. Some problem properties couldn't be given away and be worth fixing, but the land the property sits on may be worth investing in if you have the timeframe and budget to redevelop it. |
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Foundation Repairs |
Structural damage may
be evident from large cracks (over a quarter inch) in the foundation
walls. (Minor cracks are not typically evidence of structural damage).
Significant cracks in any wall or ceiling surface may be a sign of
structural damage caused by foundation movement. If in doubt we suggest
you consult a structural engineer as well as a home inspector (a typical
home inspector will highlight the problem but may not be qualified to
determine if it is structural or otherwise).
Carpenter Ants commonly nest in woods near the home
and have satellite nests inside the home. They eat away at the timbers
from the inside to create their nests. Carpenter Ants commonly eat
through damper timber when building their nests.
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