Whether you are interested in investing in your first hoarder property, or have been down this road before, the tips below can help you tackle your next investment!
1. Understand the Work Load
Since the property is in a distressed condition it will require more attention than the typical investment property, but can be a very rewarding project for you and the neighborhood. With that said, don’t underestimate the extensiveness of this project. Underestimating the smell can be very expensive in the long run. Hoarders tend to hang onto animals and let them roam the house without cleaning up after them. When this occurs in a house for several years the floor boards and framing rot away. Should you choose to invest there are extreme cleaning professionals who can help gut the house for you.
2. Leave it to the Professionals
Before you put the property under contract, do your research so you know exactly what you are getting into and the expenses you will have. It is highly recommended to bring a team of professionals with you to survey the property.
- Start with a General Contractor to get advice and an overview of the property.
- Hire a Structural Engineer to evaluate the foundation, the condition, and the repairs that will need to be done.
- Plumbing is another common problem in hoarder homes. Hire a Professional Plumber to check all the pipes and systems so you can have an idea of what is in working condition.
- It is also a good idea to have an Electrical and Mechanical Engineer scan the property to check the electrical wiring and mechanical systems in the home.
- By hiring professionals in these key field they will be able to complete all the major check points and determine if you will need to do a teardown or renovations. When touring, keep in mind your safety. Be aware of any structural issues that could potentially cause you harm. Wear long pants, boots, gloves, and a mask when walking the property.
3. Making the Right Offer
Once you have acquired all of this information about the hoarder property it is time to evaluate the offer you want to make. Time is money and the more time you need to spend on an investment the more money it is going to cost you. With a hoarder property, you will likely be buying it as-is. There will be time added to empty the home that you would not have to account for in many other investment opportunities. Evaluating your timeline allows you to understand the offer you need to make in order to accommodate all the projected repairs and the market price for that neighborhood. Having a full understanding of the time and money you will need to complete the project is crucial to making the investment successful.
Hoarder properties are not uncommon in this business. It’s great to be educated on how to deal with them so you don’t pass up a great investment opportunity despite the instant shock of the property’s condition. We have worked with several people flipping hoarder houses and would love to help you through the process should you choose to pursue it. If you have any questions or want to find out more about investing contact us!