Foundation problems with a repair cost estimate in the thousands of dollars can drive an ordinary seller to phone an “I Buy Houses for Cash” number, hoping for a solution. But less-experienced investors can become just as caught by over-paying fora property with big “hidden” foundation problems.

When you make your first walk-through, what red flags should have you hitting the speed-dial for your foundation experts, before you calculate a purchase price? This blog post is just an introduction covering a few of the most easily visible warning signs.

• Exterior

o Stairstep cracks in the outer walls – a short run of cracks is not necessarily a problem, but be more concerned if you see a continuous line from ground to roof.

o Vertical cracks in the the foundation itself can mean it is rising or sinking.

o Sight along the line of the foundation – it should be straight, and so should the walls.

• Floors not level

o A slight slope or un-eveness may not be obvious, so bring a marble and a level and believe what each tells you – even if the residents are in denial!

o Long floor cracks – especially if they are showing separation.

• Gaps

Widening cracks could signal trouble – the more space, the more trouble.

o A gap at the top of a wall

• inside the house where it joins the ceiling, or
• outside the house where it joins the eaves.

o A gap at the bottom of a wall

• inside the house above and/or below the baseboard, or
• outside the house where it joins the foundation.

o Gaps in and around moldings and the framing of windows and doors.

o Widening cracks across any interior or exterior surface: wall, ceiling, floor, roof or foundation.

• The top floor – look up!

Foundation issues are often first visible at the top of the house, rather than the bottom. Look at the top story ceiling for molding cracks and gaps, as well as the other tell-tale signs.

• Windows and doors that are difficult to open and close due to the frame having shifted.

Not every crack is an issue. Minor cracking in aging mortar, paint, grout and even drywall are likely to be cosmetic. And some warning signs may signal water damage or other types of damage, rather than a shifting foundation. But be aware that a major water saturation from any source, including rain and broken pipes, may have affected the foundation.

Your contractor will be clear about what can be handled cosmetically, and what needs a thorough expert investigation. And never, ever assume that any city or region isn’t likely to have foundation issues – no location is immune.

Be wise to the risks – and the opportunities – of houses with foundation problems, prepare for due diligence and add foundations to your rehab repertoire!

Take a look at these photos, thanks to an excellent tutorial provided by a foundation repair company.

If you have little or no experience with foundation problems, do you feel prepared to take them on in a rehab?

Request a FREE one-on-one Investor Aptitude Assessment with an experienced, real-world real estate investor.