Michael walks us through an inspection report on his short term rental
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In this episode, Michael wraps up our discussion on reading and deciding what to do about our inspection reports. Michael walks us through his inspection report on a short-term rental property. He highlights the most concerning issues and discusses how he will go about addressing them to set himself up for success. The inspection contingency period is a crucial step in buying a new property. Doing your homework here can make or break a deal. Overlooking issues in the inspection report can potentially leave you with thousands of dollars of repairs in the near future and eat up that precious cash flow. --- Transcription Before we jump into the episode, here's a quick disclaimer about our content. The Remote Real Estate Investor Podcast is for informational purposes only, and is not intended as investment advice. The views, opinions and strategies of both the hosts and the guests are their own and should not be considered as guidance from Roofstock. Make sure to always run your own numbers, make your own independent decisions and seek investment advice from licensed professionals. Emil: Hey, everybody, welcome back for another episode of The Remote Real Estate Investor. My name is Emil Shour. And today I've got Michael: Michael Albaum. Pierre: Pierre Carrillo. Emil: And if you saw the last episode here and I walked through a recent inspection report, I covered a triplex that I bought back in November of 2020. And Peter actually walk you through an inspection report that he's currently in contract for on a property. So last person up is Michael and just a quick recap, what we're doing is we're walking you through these inspection reports, calling out things that we see and just walking you through our thought process giving you an over the shoulder look on how we look at certain items listed how we go about addressing them, either with the seller or getting different bids. So that next time you get an inspection report, you feel confident to do the same. Alright, Michael, kick us off. Michael: Alright, so I'm going to be pulling up this inspection report for a property that I am also in contract for similar to Pierre. So this is a 62 page inspection report, which oftentimes they are. And like Emil mentioned in the prior episode, the inspectors job is just to find everything that they can. And it's also important to note that inspectors there's like a national certifying body for home inspectors, I believe it's national. And so there's set guidelines and parameters for things that they're looking for, and how they report and things that they do look at and things they don't look at. So just keep that in mind. And also something it's important to keep front of mind is that inspectors are looking for safety and habitability issues, not necessarily aesthetics, or rent readiness for a property. And so I've heard people in the academy talk about oh, well I got my inspection report and it was a $2,000 repair estimate. And then my property manager walked it and said, oh, there's an additional $5,000 and make rent ready costs. So these two people are looking at things through two different lenses. So it's really important to keep that in mind. And I always try to have the property manager walk with the inspector if at all possible, or at least walk after the inspector so that way they can give you their two cents around okay, well, that was the inspection, safety, habitability his side Now let's look at the make rent ready stuff, because the inspector is probably not going to tell you if the walls are scuffed or if the you know, the carpet is is thinning, right? That's all stuff that that a property manager is gonna be looking at. Pierre: I was just gonna say, Michael, why does your house look way nicer than Emil and mine? Emil: This is short term. Michael: This is a short term rental. Yeah, I'm getting out of an older property. Similar to Emil’s about 100 years old, I did a bunch of value-add rehab work o