Many investors look for junkers or "ugly houses" that they can buy at a price significantly below the market with the goal of rehabbing the property and selling it a few months later for a large profit. It can be a great strategy as long as the investor is careful and finds out everything about the property before buying it. The downside is that often there are hidden problems that don't show up until the property has been purchased and the work has begun. If the investor had not properly budgeted for the unknown before buying, he or she could wind up losing a great deal of money before getting out of the deal.

Inspections done by professionals can help to insure that everything possible is known ahead of time. The inspection fees can add up to a hefty amount, but they are probably worth it in most cases just for the peace of mind that they allow.

First, I would want to get a title report. If the seller was sloppy enough to allow the house to get into the condition it was in, they probably weren't much better about cleaning up anything that might have caused a cloud on title. Make sure you have a marketable title.

Next, especially here in Texas, I would look for a foundation inspection from a qualified engineer. The soil is treacherous here and I've already learned an expensive lesson about foundations on my own personal house. After that, in no particular order, I would want several additional inspections.

I would get a general home inspection done by a qualified home inspector. It would help to confirm the things that I had found when I was looking for things needing to be repaired and it would probably turn up some things I missed. If that person was not able to inspect the roof, then I would be likely to call my roofing contractor to come out and take a look at it. Especially if there was anything on the roof that looked suspicious.

If any foundation work had to be done, there would be a likelihood of plumbing problems after the fact. Either way, it would be a good idea to have the plumbing inspected. Depending on the age and condition of the place, I might consider having an electrician come out and test everything that he could get at. If the property had a septic system and/or a water well, I would very definitely have them tested. Swimming pools can also be significantly affected by soild movement. I would probably have them inspected anywhere, but especially here in North Texas!

Actually, as I proof-read this, it occurs to me that these things are true for any home purchase, not just for investors. I suppose you can never cover every single eventuality, but the more you check up front, the less likely you will be to have problems down the road. Good Luck!