I frequently find the best deals are properties with cosmetic damage. Holes in sheet rock, stained/torn carpet, paint, plumbing fixtures; these are not major costs. Even more important, these types of costs are relatively predictable. However, there are some problems that, to me, are so unpredictable that I would walk from any house that has them. Note that the problems I listed below are specific to Las Vegas; your location may have others.
Code violations - Extra rooms added, converted garages, amateur wiring and plumbing. These types of problems are not only potential liabilities, you have to disclose them when you want to sell the property and that will scare off a significant portion of your buyer pool.
Mold - this is typically only a problem where there has been a long term leak or the property was flooded and not property dried out. Here is a photo of the worst case I have seen. The cost to remove the mold is prohibitively since you will have to employ an EPA certified mold remediation company ($$$$$). Plus, you will have to disclose this when you sell the home.
Settling - Every home is subject to some settling but, there are areas where the settling is so significant that I've seen cracks large enough to insert a finger.
Structural - Broken roof joists and such.
Low water pressure - I know of no way to fix this.
Smells - there are some properties that have a very strong pet or other odor. Eliminating these odors can require replacing all the carpet and pad, painting all the walls, maybe painting the floors too and still not get rid of it. Houses with such an order problem seem an unacceptable risk to me.
There are a few more things that I always check for and you need to develop a list of what these high risk problems are for your area. There are also situations concerning the location of the property that could make an otherwise good property unacceptable.
Proximity to nuisances - In Las Vegas, properties next to busy roads, commercial establishments and odor sources can be difficult to sell or rent. In North Las Vegas is a large pig farm (really). Being downwind of this is not something I would like to experience and neither would a renter or future buyer.
Driving path to property - I have seen great properties that are in a "pocket" surrounded by distressed communities. This will affect the re-sale ability and the rent ability of such a property. As in most things concerning rental property, common sense is imperative.
Contact me if you are considering buying or selling Las Vegas real estate. You will be glad you did.
...Eric
Eric Fernwood
RE/MAX CENTRAL
8400 W. Sahara Ave
Las Vegas NV 89117
Email: EricFernwood@gmail.com
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