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5 Items Investors Overlook When Performing Due Diligence1. Sewer LinesLet me tell you, there’s no better way to endear yourself to a tenant’s heart than for raw sewage to back up into their house a month or two after they’ve moved in. Unfortunately, I know this from experience.If you’re buying a house that’s more than 40 years old, scoping the sewer line is a must. You can usually get a plumber to do it for around $150. I would always make sure to accompany them, though, because many will lean on the side of “better safe than sorry.” If a sewer line has a few roots or a small belly in it, you can probably baby it along. Just snake it out and flush some root killer down the toilet. But if there are significant bellies, breaks or endless roots, it needs to be replaced. This will usually cost $3,000 to $6,000. Usually you can have the plumber videotape it and give you a CD of the scoping. This can be great for renegotiating with sellers.
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