Whether you are a first-time investor or a veteran property flipper, you may wonder if the newest property that comes on the market is worth purchasing. This may especially be true if the price seems too good to be true.
Unfortunately, if the price of a potential rental property does seem too good to be true, it probably is. However, if you want to be certain, Central Bank provides a few warning signs to steer clear of a property.
The owner will not allow an inspection
No matter how much of a steal a home seems to be, if the owner will not allow you to conduct an inspection before making an offer, do not make the offer. If the owner refuses an inspection, this should prompt the question, “What is he or she trying to hide?” Unfortunately, fixing that hidden something is likely to eat up any profit you stand to make through renting or flipping.
The house smells off
Homeowners or realtors can mask issues through clever staging, but there is little to no way to mask lingering odors. When touring a home, use your sense of smell to detect costly issues. If you smell sewage, the house likely has piping issues. If you detect mustiness, there may be mold in the walls. If all you can smell is Febreze, you should again, ask yourself, what is the owner trying to hide?
These are just a few warning signs that, no matter how low the price, a home is not a worthwhile investment. If the owner will not allow an inspection, or if you detect foundational or odor issues, consider passing on the home and waiting for the next one to come along.