House Renovation and Rehabbing Tips for Real Estate Investors and Homeowners
Termite Inspection

By Pete Youngs

When buying and selling houses, termites can be a serious problem. As most real estate investors and homeowners know, no lending institution will close a deal without a “termite letter” certifying that the home is free of active termite infestation.

For real estate investing, buying a home without knowing whether there are termites could lead to some nasty profit-killing surprises. This is especially true for real estate investment in neglected houses (“junkers”) that require rehabbing or significant renovation.

You can hire a professional service to do the job, and if your only an occasional rehabber that may be the best solution. However, if you renovate houses and regularly buy property in poor condition through short sales or on the cheap, you should be able to do your own quick inspection to determine whether a problem exists. Remember, every problem for a rehabber is a potential profit center, by negotiating down the purchase price. On the other hand it could be a deal killer. In which case, having the savvy to walk away to save you money and headaches.

Here is a concise how-to inspect for termites from a master rehabber – Pete Youngs. For more rehab tips and how to improve your rehabbing profits, click here

STEP 1 : WHAT YOU’LL NEED

EQUIPMENT CHECKLIST

	Old Pants and Long Sleeve Shirt			Screwdriver
	Dependable Flashlight			Tape Measure
	Ladder			Pen and Paper

STEP 2 : WHERE TO LOOK

	Areas where soil comes into direct contact with wood, particularly untreated wood
	Areas where surface water, or perpetually wet soil, contacts or is very near to the structure
	Areas where foundation material has degenerated and become permeable, cracks in slab, and expansion joints in slab
	Check the external foundation wall for mud tunnels
	All wood members in basement (if present), or in crawl space under home (if present)
	Earth-filled porches: the soil should be at least six inches below any wooden parts
	Trellises which touch the soil and are connected to the house
	Flower planters built against the house
	Wooded forms around drains. Paper collars around pipes. Paper is made of wood, which termites eat.
	Porch steps in contact with the soil offer a stairway to the home.
	Area around heating unit keeps soil warm year round and accelerates termite development.

STEP 3 : MOST COMMON AREAS FOR TERMITES

AREAS THAT OFFER FOOD SOURCES		AREAS THAT PROVIDE MOISTURE

	Mulch beds		Downspouts
	Wood piles		Water spigots
	Tree stumps		Leaky water lines
	Landscape timbers		Air-conditioner drip lines
	Wood fences		Along sewer lines
	Wood decks or porches		Any standing water
	Wooden posts sunk into the ground		Missing, broken or clogged gutters
	Trees & Shrubbery

STEP 4: WHAT AM I LOOKING FOR?

OUTDOORS

	Examine the foundation of the house, garage and other structures for shelter tubes coming from the soil.
	Pay particular attention to attached porches, connecting patios, sidewalks, areas near kitchens or bathrooms and narrowly confined or hard to see places.
	Check the soil moisture around or under the foundation to determine if faulty grade construction creates moist areas adjacent to the structure.
	Check window and doorframes and where utilities (air conditioning pipes, gas and electric services) enter the structure for termite infestation or wood decay.
	Observe wood eaves and guttering closely for defects that might cause leakage and eventual wood rot.
	Inspect behind closely planted dense shrubbery or foliage.
	Note particularly and earth to wood contact such as fences, stair carriages or trellises.
	Open and examine any exterior electrical meter or fuse boxes set into the walls, a common point for infestation.
	Carefully inspect wood materials adjacent to swimming pools that may be splashed frequently by water.
	If the house is of pier and beam construction, thoroughly inspect the area between the floor and the underlying soil (crawl space). Examine the inside of beams, chimney bases, hearths or piers for shelter tubes.
	Look carefully at the top of the foundation wall where the floor and wall intersect.
	If you find any mud tubes, break a piece off. If it is moist, it is an active tunnel. If, however, it is dried out, it is no longer active. If you come back a couple of days later and the tunnel is rebuilt, that is another sign the tunnel is active.

INDOORS

	Probe or carefully sound exterior porches, doors and window facings, baseboards, and hardwood flooring.
	Be careful not to deface finished wood when probing.
	Carefully examine any attached earth-filled porches.
	Examine all known or suspected joints, cracks, or expansion joints in the foundation and unusual blistering in paint or wallpaper surfaces. Discoloration or staining on walls or ceilings may indicate water leaks, which can decay wood and aid termite infestation.
	The inspection should be particularly critical where plumbing or utility pipes enter the foundation or flooring. Check floor coverings for raised or split areas.
	Examine attic for shelter tubes, water leakage, wood rot or damaged wood.
	Search all areas for signs of discarded wings from swarming alates (flying termites).

STEP 5: WRITE IT DOWN

Use a graph pad to draw out the layout of your home and yard and designate all things you find in step 2 through 4. This will be your action plan for taking corrective measures to reduce your risk of infestation.