As a real estate investor, you can save yourself money and time if you know how to spot signs of foundation damage when you first look at a potential investment property. Some minor problems can be fixed, of course. If you only spot minor problems, it’s possible that hiring a professional evaluator to check the property may be worth it. Not all foundation issues mean you should walk away from an investment property. But you can save yourself the cost of an evaluation if you can spot the major foundation issues yourself.
Keep in mind, you’re not just looking at the foundation. Obviously, any foundation crack warrants further investigation. Other tings can top you off to a bad foundation too! Broken chimneys, floor cracks, and wall fissures can indicate that the foundation is moving. In the first few years, sinking is common and that can sometimes create tiny cracks that are less than 1/16 inch thick. When cracks are larger than that, it may be an issue.
If you find horizontal cracks in concrete block, those are usually more serious. The actual perimeter of the structure is probably under too much pressure. When the cracks are at a 45 degree angle, it could indicate severe movement. Exterior stair step cracks that appear along the corners of the foundation is another thing to look into deeper.
Did you notice one single vertical crack? That could mean that the foundation is actually moving upwards. This is called foundation upheaval and it’s the opposite of settling. Moisture in the soil can cause it. Sometimes it indicates a leak under the slab.
Other things to watch out for:
- Doors that don’t open properly
- Cabinets pulling away from the wall
- Gaps around windows
If you find something that is only slightly concerning, it might warrant hiring a professional to come out and do an evaluation. Evaluations of foundations usually only take about an hour.
Are You Looking for a Hard Money Loan to Flip a House Or Buy A Rental Property?
Paces Funding is a hard money lender offering hard money loans to purchase and renovate non-owner occupied residential and commercial properties throughout the Atlanta, Nashville, Florida, or the North and South Carolina metropolitan areas. Our application process for hard money loans is easy. Just fill out this very simple online form and you will be contacted shortly. Unlike other lenders, the window between applying and funding is very small. We have funded properties in as a little as one day, but typically funding hard money loans takes about seven to ten days.
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.