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I have a great REO deal on the table BUT there is mold in this property. I wanted to know if anyone has done a rehab before on a property that has mold? If you had any problems or issues selling to a new buyer after the problem has been resolved?
I have the inspection report to send and talk about it over the phone. Some help is needed from your Arizona Cash Flow Member.
Thanks,
Please feel free to email me your number to [email protected]
Thanks Hank. Never dealt with mold at all, espeacially over here in the desert. Looks like the 2nd floor shower head and toilet was leaking into the 1st floor for a while. Repairs on the quote that selling agent/bank have is ~$4,500.00. We both know these quotes are always wrong when you start to tear into something unknown. i just doubled the quote repairs off my price.
Everything else in the house looks GREAT and smells like $$$$$.$$ when we walked in.
Vic,
You probably guessed right with the doubled repair cost for the leaks and repaired wood/drywall/flooring/etc, however the mold free certification will be an additional $1k-$3k for any ductwork treatment where mold will hide unseen. The RE agent has to give you a break on that cost too.
Come on over to the Gulf Coast region and you’ll find some mold in almost every house.
Hank
Vic,
I don’t have lots of experience with mold, however had done a couple rehabs with extensive mold.
Make sure you get a good rehab done by a licensed contractor who has dealt with mold before so he/she knows where to look. Mold likes to hid in moist areas that are usually hard to find in my quick walk-thru when I buy. Heating & a/c systems are prime locations too. That means duct cleaning also. In the end, you will want a mold report from a certified inspector to show potential buyers (and possibly their lender) that the house is mold clear.
All this sounds horrible, however it should add only $1k – $2k to a 1500 sf house.
The first time mold almost stopped a sale I was horrified. Now after learning the steps, it’s just another action to be planned for when rehabbing.
Hank
Vic,
We had a 2-story duplex rental for years. When we went to sell it four years ago, we did an inspection first to (1) see if there were any issues and (2) to be able to show to potential buyers. The entire attic was MOLD ! A bathroom vent fan duct had come off years earlier and the tenant never told us; they just sprayed “Anti-mold bath cleaner” on the bath ceiling to get rid of it on the interior.
We ended up having to tear off the entire roof, down to the trusses since everything was black looking. We sprayed diluted bleach on the trusses and re-roofed. We also added two automatic attic fans. Total cost was about $6,000. But, when buyers looked into the attic, the wood was fresh, the roof was new and the attic fans also helped keep the units cooler in the summer.
Bottom line is, if the numbers still work after padding for the worst case known repairs, you’re good to go.
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