What Every Homeowner and Investor Needs to Know About Home Inspection Reports │ Jim Anderson
How to Use a Home Inspection to Estimate Your Initial Investment (Even Before You Buy)
Featuring: Jim Anderson, Certified Home Inspector and Founder of Brothers Home Inspection
On The Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments hosted by Kent Fai He, we sat down with Jim Anderson, certified home inspector and founder of Brothers Home Inspection, to unpack one of the most overlooked aspects of buying or investing in real estate — the home inspection.
Jim doesn’t just hand you a report, he gives you a roadmap for your investment. With decades of homeownership and inspection experience, he breaks down how to interpret inspection reports, estimate repair budgets, and avoid common pitfalls that derail first-time investors.
Whether you’re buying your first rental or your dream home, Jim’s “Report Card Framework” will help you see a property the way an investor — not just a buyer — should.
What Do Home Inspections Actually Tell You (and What They Don’t)?
When most buyers ask, “Did the house pass inspection?” Jim’s answer flips that assumption on its head.
“A home inspection isn’t about passing or failing. It’s about understanding what you’re buying,” Jim explained.
He compares inspections to report cards. Each major system — roof, HVAC, plumbing, electrical, foundation, and windows — gets its own “grade.” An A might mean excellent condition, while a D signals immediate attention.
A D on the HVAC might mean it’s functional but nearing the end of its lifespan.
An F on the roof could mean a $15,000 repair.
A C on windows might indicate worn seals but not urgent replacement.
The point is context. Once you have that report card, you can decide whether to negotiate repairs, budget for future costs, or walk away.
“You’re not done once you get the report,” Jim said. “You’re just starting to understand what the property is telling you.”
How to Ask the Right Questions During Your Inspection
Kent asked Jim what most investors fail to ask during inspections. Jim’s response was simple but powerful:
“Don’t just ask if it passed. Ask how it scored — and why.”
The best buyers treat the inspection as an interactive process, not a transaction. Here’s how:
Be present. Walk the property with the inspector. Look over their shoulder.
Ask clarifying questions. “Why is that rated a D?” or “What caused this moisture stain?”
Document everything. Take photos or videos to compare when you get contractor bids later.
Prioritize by cost and impact. A $500 plumbing repair is not the same as a $10,000 roof replacement.
Jim recommends treating the home inspector as your first project consultant, not a formality. “A good inspector gives you confidence, not confusion,” he said.
What Do Most Buyers Miss During Roof and Foundation Checks?
Jim shared that small roofing issues often snowball into costly foundation problems — especially when water isn’t properly diverted away from the home.
He looks for:
Cracked or missing shingles that allow water intrusion.
Deteriorated flashing around vents or chimneys.
Clogged gutters that spill water directly toward the foundation.
“Water is the softest thing in the world until it’s not,” Jim said. “Over time, it erodes everything.”
One of his more shocking stories involved a cracked foundation caused by tree roots pushing through the concrete slab. The bow in the floor was barely visible — until the carpet was pulled back.
The takeaway? Always ask your inspector:
Are there signs of water intrusion or soil erosion near the foundation?
Do you recommend a structural engineer for a second opinion?
Has this property’s grading or drainage been altered over time?
Why You Should Always Get Three Quotes After the Home Inspection
After an inspection reveals issues, Jim and Kent both agree: never take the first contractor’s word — or price — as gospel.
Kent shared his own story: one HVAC company quoted $13,000 for a new system, while another said it only needed $300 in refrigerant.
“You have to get multiple opinions,” Jim said. “They help you triangulate the truth.”
Every professional sees the same problem differently, and those perspectives help you make a confident, cost-effective decision.
What Window, Plumbing, and Electrical Issues Should Investors Look For?
Jim walked through several systems where investors can save thousands by understanding the basics.
Windows
Check functionality: Do they open and close smoothly?
Verify seals: Improper seals lead to dry rot, termites, and mold.
Identify fogging: Moisture between panes signals insulation failure.
Plumbing
Look for leaks under sinks, near the water heater, and around toilets.
Test water pressure and drainage — slow drains can mean blockages or pipe corrosion.
Ask whether pipes are galvanized, copper, PEX, or PVC. Older homes often mix materials, leading to inconsistent water flow.
“Every drip matters,” Jim said. “A single leak running 24 hours a day can rot floor joists before you even know it.”
Electrical
Confirm GFCI outlets near kitchens and bathrooms.
Check if wiring is aluminum or copper.
Look for spare capacity in the main panel if you plan to add solar or EV chargers.
“A 50-year-old home may only have 50 amps,” Jim noted. “That was fine in the 1970s, but not today.”
How Do You Know If a Pest or Termite Problem Exists?
Jim’s pest stories are memorable — and a little unsettling.
He once inspected a multimillion-dollar home with rodent droppings on the headboard of the master bed. The attic above was filled with burrows and fecal trails.
“Curb appeal doesn’t mean clean,” Jim said. “Even luxury homes can hide pest issues.”
Red flags for investors and homeowners:
Wood shavings near baseboards (possible termite frass).
Wasps or hornets nesting in roof eaves.
Fecal pellets in attics, garages, or behind appliances.
Jim’s rule:
“If you see it once, it’s not isolated. Call a licensed pest control expert immediately.”
Key Insights & Frameworks
Treat inspections like report cards, not pass/fail tests. Grades give context, not judgment.
Walk with your inspector. Learn the story your property is telling.
Water is the hidden enemy. It causes most structural damage over time.
Always get three bids. Contractors’ perspectives reveal true costs.
Pest problems don’t discriminate. A clean home isn’t always a safe one.
Best Quotes from Jim Anderson
“A home inspection isn’t about passing or failing. It’s about understanding what you’re buying.”
“Water is the softest thing in the world until it’s not. It erodes everything.”
“You can’t judge a home by its listing photos. You have to feel it under your feet.”
“A good inspection gives you confidence, not confusion.”
“Even multimillion-dollar homes can hide pest problems. Curb appeal doesn’t mean clean.”
Common Questions About Home Inspections
Q1. What’s the purpose of a home inspection for investors?
To identify potential risks, repair costs, and maintenance priorities so you can negotiate better or plan your renovation budget accurately.
Q2. What should I do if my inspection reveals major issues?
Don’t panic. Use it as leverage. You can request seller credits, renegotiate price, or walk away if repair costs exceed your comfort level.
Q3. Should I attend my home inspection?
Yes. Walking the property helps you learn directly from the inspector and see issues firsthand, which written reports can’t fully capture.
Q4. How often should properties be re-inspected?
For rentals or older homes, a general inspection every 3–5 years is a smart preventative step to avoid deferred maintenance surprises.
Q5. What’s the biggest red flag in any inspection?
Active water intrusion or foundation movement. These usually signal bigger systemic problems that require specialist follow-up.
Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments. Each episode brings real-world lessons from industry experts like Jim Anderson to help homeowners, investors, and advocates make smarter, more sustainable housing decisions.
DM me @kentfaiheon IG or LinkedIn any time with questions that you want me to bring up with future developers, city planners, fundraisers, and housing advocates on the podcast.
