I recently encountered an IP with + cash flow, minimum $1000/month after expenses.
The thing is I did my first walk through. There are many small things I need to fix (all units have leaky faucet, some of the bdrm doors need patching up, etc.) My biggest concern is that one of the upper units had a water leak in the bathroom and went through the lower unit’s bthroom. I seem to find mold where the leak was.
Would it be worth it to purchase the IP with a worst case mold problem? Would it be costly?
Joseph
If you can make $1000 a month positive cash flow go for it. It should not be too bad to fix the mould. Worse case scenario would be to remove the bathroom ceiling, see where the leak is and get it fixed.
After purchasing you may even get the above unit to bear some of the costs or even the body corporate. You may even complain to the agents and offer a lower price for the mould.
If you need another opinion get a building inspector in for his advice.
Hi Joseph,
I persoanlly wouldn’t sit and wait to go down the path of suing, however I would get a building inspector to see where the problem may lie. I recently had a bathroom repainted as the ceiling and walls had mould. I was informed that despite the ceiling exhaust fan, the size of the bathroom and the steam from long showers may have caused the mould. Despite this, I had it repainted and I got to know the tennants very well and I think they perceived this as a favour to them. If the numbers stack up and you can solve the mould problem then congratulations!
Cheers,
Gatsby!Hi Rob,
It’s cool. You’re exactly right. When you always finish a post you state,
“Comments made are of a general nature and should not be construed as advice to any particular individual.”
I agree completely. If I was misleading in my reply to Joseph and you read this as a criticsm to your advice (how does that work?) then I apologize. My reply was of a general nature, otherwise I would have replied to you directly. Please don’t construe my advice to any particular individual as being to you. You have given some great advice in your replies and I always benefit and thank you (without having to post it). Please don’t worry over every word ever written on this site as being targetted to you. That would be a mistake. Again, if you felt my reply was somehow ‘personalizing ‘ you and you felt you had to highlight it then I apologize.
Cheers,
Gatsby!
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