3 Scary Pre-Home Inspection Red Flags To Avoid
Q: Gerald, my wife and I are looking at buying a home–we haven’t decided whether we want to live in it or rent it out but thought we’d ask if there are any red flags we should look for to avoid? Kendrick, Columbia, MD
A: Great question, Kendrick. There are a few red flags that I use to disqualify properties to buy–here are 3 of them:
1. Property with leaking or compromised oil tank (expensive environmental hazard)
2. Property located next to gas station (expensive environmental hazard)
3. Property located next to dry cleaners (expensive environmental hazard)
If you have experience resolving these kinds of issues, these conditions may present an opportunity for you as an investor–for example, I met a real estate investor who specialized in buying properties that had previously contained meth labs! A house that had been a meth lab is one that I would stay as far away from as possible, however, in his case, this investor must have known how to rectify that bad situation and the benefit to him was that I’m sure he didn’t have much competition from other buyers! The most important rule for property buyers is caveat emptor–make sure you do all your thinking and analysis before you buy.
Thanks for your question, Kendrick. For more real estate information and tips visit my blog at geraldlucas.com.