Here we go again

4 replies [Last post]
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Joined:
01/19/2015

Sellers agreed on a purchase price of $70,000 for a supposedly 9500 SF building.  Going to meet our buyer's broker to put down deposit and

Before thinking it is a bargain, part of it has major mold problems.  So first thing is to bring in mold, roofing, and septic experts to tell us what the cost might be to make whole.  And, how big is the septic - this is proving to be the Achilles Heel of all our add on services.

OTOH, when foreclosed, it had a $250,000+ mortgage.  Standing outside, I ask myself how this much building in reasonable shape could be so cheap.  It has a potentially amazing entrance on the side, for our spa intentions...

Nice area, somewhat busy country roads, but a number of empty businesses.  Has 2 3 bedroom apartments, a large corporate area, and a standalone building with reception and a few half baths sprinkled around.  Good sized parking lot, wooded all around and 0.75 acre lot.

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[admin note: Created enough waves and discourse to be shown the door.]

 

Lee2014's picture
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Joined:
12/11/2014

   I agree with Mort and Empty Nest, leave it alone.  You don't want the headache, money, red tape, etc to bring it up to code....or the bad reviews from people staying there on an overcast weekend where smell linger in the air.  Smoke and mold are the hardest to remove.

 This isn't the same property that you had discarded months earlier?

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Morticia's picture
Online
Joined:
05/22/2008

Mold abatement is probably not worth getting the property for free. Insurance companies HATE mold. They don't believe it ever goes away and they do NOT want health claims years down the road.

When we had a flood the insurance company required we have the entire room gutted and treated to PREVENT mold from forming due to the water. Offline for 2 months while all the work was done. Insurance kept asking if we had the certificate from the abatement company for their files.

Do you want to gut the building to clear out the mold? Why is it moldy in the first place? What external/internal factors are contributing to mold buildup in this property? Have they been fixed?

Here's what I tell my son all the time (he buys and renovates properties) - Don't be cheap. Don't overpay, but don't be cheap.

You are looking for a deal but you are buying a disaster. So says me. Take it or leave it. Eye-wink

 

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Offline
Joined:
05/22/2008

Duplicate???

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Joined:
05/22/2008

Sorry, I already commented on mold issues...would be a NO for me no matter what the price.

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