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Investing in real estate requires meticulous research to make sure that you're getting your money's worth, and that includes construction inspections of the property. It's easy to disguise real estate as prime property, especially if you don't know what to look for. Here's what you need to do to verify the structural integrity of a property.
Key Highlights:
- Cracks on walls, ceilings, and uneven floors often indicate weak framing, poor-quality concrete, or foundation issues that may require costly, long-term repairs.
- Misaligned doors and windows, along with thin or hollow walls, suggest poor workmanship, warped framing, or insufficient insulation, affecting both comfort and property value.
- Bubbling or peeling paint and roof deterioration are clear signs of water intrusion, cheap materials, or improper installation that can lead to mold growth and long-term structural harm.
- Faulty wiring and water damage are serious safety and maintenance concerns that could lead to fires, plumbing failures, or foundation erosion if not addressed early.
- Buying a home without proper inspections can lead to heavy repair costs, legal compliance issues, and dissatisfied tenants—making expert evaluations essential before purchase.
Construction Defect Checklist
□ Cracks On Walls And Ceilings
Cracks on the walls and ceilings are the most obvious signs of poor workmanship and substandard materials. Either the concrete used is of poor quality, or the framing is weak. The bigger concern, however, is poor load distribution. Replacing substandard materials can already be expensive, but fixing bad load distribution requires long-term repairs and a specific approach.
□ Uneven Floors
Sloped floors are also one of the visible signs of poor construction, which can be caused by many things. Poor subfloor materials, weak support beams, and uneven foundations are the most common culprits. These aren't just cosmetic imperfections. They can be an indicator of bigger structural issues that you need to address to avoid risks.
□ Misaligned Doors And Windows
Just like other construction defects, misaligned doors and windows can be due to many causes. The use of low-quality materials can lead to the frames warping, although this is also among the common signs of structural problems. Best-case scenario, improper installation is what's causing the misalignment. Otherwise, you might be in for costly repairs.
□ Thin Walls
You can simply tap on the walls to determine whether they feel hollow or thin, which can mean low-grade drywall. It can also mean that the home has insufficient insulation. While hollow walls brought by poor insulation don't pose risks, you'll have problems with temperature control and keeping your tenants comfortable.
□ Bubbling Or Peeling Paint
You likely won't find this in a new home, but older buildings can show signs of water intrusion or cheap paint when it peels or bubbles. It could also be a sign of unsealed surfaces, which points to poor workmanship. It's not just unappealing to the eye. Damp walls can also lead to mold growth. It may also be an indicator of water leaks, which can erode the home's foundation in the long run.
□ Faulty Wiring
Shoddy electrical work is not just inconvenient. It can be due to faulty wiring, which in itself is a major red flag in homes. Never mind increased energy bills; when wiring issues can turn into electrical fires and tenant harm. It's not just a costly mistake.
□ Roof Deterioration
You can tell that the roof is made of poor materials when it starts falling apart just a few years after the home's construction. Keep in mind that roofs typically last for decades before you see any sign of wear. Poor installation can also contribute to this issue, but that means you'll have to fix it to avoid water damage. Look for signs, like missing shingles, cracked roof tiles, or curling shingles.
□ Water Damage
Water damage is caused by various factors, such as leaky pipes or poor drainage systems. It can sometimes be because it was improperly installed, or the leaking pipes are made of weak metals. This is concerning, especially for a newly built home. Plumbing problems can cause water stains at best, but they can turn into bigger concerns, like mold growth, which can result in health problems for your tenants. Worse, it can erode your home's foundation when left unchecked.
How It Affects Rental Real Estate Investors
Immediately purchasing a property without doing your due diligence can drain your bank account in a flash. You will have to cover fixes and ensure that everything is properly installed. Leaving it as is creates poor housing conditions for your tenants, which will impact tenant satisfaction heavily.
Bigger structural damage needs to be addressed to create a habitable living environment for renters, which is required by law. That means you can't start your business without resolving major problems. like structural damage and foundation issues.
Detecting problems in a home and its surrounding areas will help you make an informed decision, opting for better real estate properties that won't give you any headaches. These potential issues are not easily spotted by an untrained eye, so hiring experts like contractors, plumbers, electricians, roofers, and other professional services is advised.
Construction Inspection FAQs
How much will I spend on fixing structural damage?
- Minor issues can cost you a few hundred dollars, but major problems with your home's structure can quickly skyrocket to about $30,000 or more.
Where do I usually find mold growth?
- In damp locations like cabinets under the sink, HVAC system vents, air conditioning units, and others. However, it's best to leave it to a professional inspection service.
Can I still invest in real estate properties with structural damage?
- You can, if the costs to repair it are worth the price compared to the projected income. You can still turn a damaged property into a dream home with the right resources and services. Just be ready for unexpected expenses during the building process.
What are the signs of a home settling?
- The common signs are doors and windows that stick, cracks in the walls and ceilings, sloping floors, and cracks in the foundation itself.
How dangerous can using substandard materials be in home construction?
- Construction defects aren't just cosmetic irregularities. The pose risks when left unchecked, such as ceilings caving in, water damage causing mold growth, water intrusion eroding the home's foundation, and other issues that could lead to tenant harm.
Management Duties Go Beyond Buying The Perfect Property
Even if you find a real estate property without issues, it requires diligent work to keep it that way. Regular maintenance and routine inspections will help you retain or increase your property value, and they keep your tenants safe.
Put your trust in professionals to maintain the quality of your investment property. Companies like Income Property Advisors offer property management services that cover everything a landlord might need, not just maintenance and inspections.
Contact us now, and we can ensure smooth operations from here on out.
