I was recently called in to inspect this foreclosure in Bellevue, Nebraska. My investor client had went through the house numerous times and had written down a pretty lengthy list of repairs that he was aware of. He is a very meticulous person and doesn't just jump into any property. He does his homework and gets estimates right to the penny before he writes an offer. Unlike a lot of investors, he actually goes into a run down home and improves them with high-quality upgrades and repairs. The end result is a very nice home for first-time home buyers.
What he wasn't aware of was the condition of the siding. At a quick glance, he figured the siding could simply be painted and it would be fine. Looking closer at it, I showed him how every single row of siding had swelled out because the bottom edges hadn't been painted in years. Rain and high humidity were causing water to absorb into the siding. There were numerous locations where the base edge was spongy. Nail pops were all over. The siding had rotted so badly in some spots that the vertical lap joints were now 3/4" or more apart. You can see it very clearly in the 2nd photo along with the wood pecker holes. I also informed him that this type of siding was involved in a class action lawsuit. (I've got an article on my website about it.)
Needless to say, this changed his calculations. He hadn't figured the large expense of having to replace all of the siding and decided to continue looking for another investment property.
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