I did a mistake by 100% trust the realtor and end up with a nightmare

[Summer Dechanukul]

Hi everyone!

I'm Summer (Newbie for real estate) 

My stupidity was I 100% trusted the realtor when he said the house (duplex) is a good and I don't need an inspector and I did believed him. Then I sign everything and took this deal with no inspection. Later I got the violation letter , a long list of what needs to be fixed which was a lot. I have done changed the HVAC for both unit, brand new and for HVAC the inspection was already passed. and I changed all windows for both unit. also I changed the new electric panels and changed all outlets for both unit but the inspection said I needs to run all electric the whole house which means I have to pay more for run the electric and replace all drywalls, that means I have to put lots more money into it.

the question is should I go further or should I cut loss? It's very tough decision for me.

- If I should cut loss. I got offered $120,000 with no inspection now

  but  I already spent $107,900 and I have mortgage balance $119,000 that I have to close 

  which means I'm going to lose around $115,000

- if I should go further 

  I have to pay more for run all electric $15,000

  Replace all drywalls $3,000 

  Plumbling $3,500

  and after I got all these done. I have to do the building inspection which I'm not sure how much more that I have to put the money into? Any Idea about the foundation?

  If I can make it done. the rent around that area for 2 units will be $1,700 monthly 

Option 1 = Cut and loss around $115,000        (which is so painful T_T)

Option 2 = Put more money $30,000 or more and get a rent $1,700 a monthly 

Please help me with my stupidity. Please give me advice. I would like to get away from this nightmare.

Thank you so much for your help.

[Bruce Woodruff]

Quote from @Mark Cruse:

There are people who come on here to lie for no reason but they usually vanish after one post and what she is saying happens to many. 

Good points Mark. At the very least this post may be a good lesson for other newbies.

[Mark Cruse]

Quote from @Bruce Woodruff:

Quote from @Mark Cruse:

There are people who come on here to lie for no reason but they usually vanish after one post and what she is saying happens to many. 

Good points Mark. At the very least this post may be a good lesson for other newbies.

Yes, this should serve as a lesson to the others. Maybe not to this extent but elements of this happens to a newbie and even experienced people probably every few seconds. There is a lady in another topic asking how can you understand the numbers for a flip and how much stuff will cost. It would be very easy to roll up on a contractor who knows she doesnt know, who will hype that thing double of what it should be or more. It wasnt even that long ago that a realtor directly lied to me because they were desperate and dishonest. This is the real world and I hope the kind of newbies who surf from trend to trend believing REI is just another easy get rich quick gig, they will study real world scenarios like this.

[Bob Stevens]

Quote from @Mark Cruse:

Quote from @Bob Stevens:

Quote from @JD Martin:

Quote from @Bob Stevens:

Quote from @JD Martin:

Quote from @Summer Dechanukul:

Quote from @Bob Stevens:

Quote from @Summer Dechanukul:

Quote from @Bob Stevens:

Quote from @Summer Dechanukul:

Quote from @Bob Stevens:

Quote from @Summer Dechanukul:

Hi everyone!

I'm Summer (Newbie for real estate) 

My stupidity was I 100% trusted the realtor when he said the house (duplex) is a good and I don't need an inspector and I did believed him. Then I sign everything and took this deal with no inspection. Later I got the violation letter , a long list of what needs to be fixed which was a lot. I have done changed the HVAC for both unit, brand new and for HVAC the inspection was already passed. and I changed all windows for both unit. also I changed the new electric panels and changed all outlets for both unit but the inspection said I needs to run all electric the whole house which means I have to pay more for run the electric and replace all drywalls, that means I have to put lots more money into it.

the question is should I go further or should I cut loss? It's very tough decision for me.

- If I should cut loss. I got offered $120,000 with no inspection now

  but  I already spent $107,900 and I have mortgage balance $119,000 that I have to close 

  which means I'm going to lose around $115,000

- if I should go further 

  I have to pay more for run all electric $15,000

  Replace all drywalls $3,000 

  Plumbling $3,500

  and after I got all these done. I have to do the building inspection which I'm not sure how much more that I have to put the money into? Any Idea about the foundation?

  If I can make it done. the rent around that area for 2 units will be $1,700 monthly 

Option 1 = Cut and loss around $115,000        (which is so painful T_T)

Option 2 = Put more money $30,000 or more and get a rent $1,700 a monthly 

Please help me with my stupidity. Please give me advice. I would like to get away from this nightmare.

Thank you so much for your help.

 Ok so IMO there are two sides to this story. I find it VERY difficult to believe the agent told you this property needed nothing. But you are telling us al it needs ALL new drywall, and plumbing why ?> All new electric why? I do not want to list all the items you mentioned but heck IMO there is much more to this story. I have never seen an agent, not send photos along with videos of the property, hmmm, Send me the address along with the lock box. I will have one of my guys check it out.  

 He sent me pictures and video but only looking good one with such as, repaint, new counter top, new bathroom. but as I said I the post. it's my mistake for trusting the realtor. Just looked at the pictures and video he sent and believe he said that the house is in a good condition and I don't need and inspector since it renovated the whole house. After I signed and closing the house, I got the violation letter from the city. This was that happened. Again, I posted that was my stupidity and I just need and advice from experienced person who could guide me. What's the point of me lying in this post?

Which city? 

 Cleveland OH 44106

Ok this post is making more and more LESS sense. Why would the city be involved? Why would the city even know about these repairs? 

Also 

I already spent $107,900 and I have mortgage balance $119,000 that I have to close

which means I'm going to lose around $115,000  ????????

Also, you said you were offered 120k as is in that area? HMMM, that is way over the true value, again this post is making less sense, 

 the purchase price $165k

Closing day I paid $51,290.22

I paid for HVAC $12,000

The expenses on 2023 Mortgage, electric, appliances and everything $23,806

The expenses on 2024 until now for changed all windows, fixed hand rail, step, basement leaked electric panel, mortgage, electric and everything $20,777.38

the mortgage balance right now in my account is $119,000

someone offered me $120k as is.

I got all paper and proved of everything. The buyer still contract me today asking me if I still want to sell it this price.

What's the point of lying?

This is nightmare for me. It's a hard time for me. I posted because I need an advice from experience person to get away with this nightmare. Instead of give me an advice but you said like I'm a liar. I wish this is not real story too. If you can not give me an advice better don't say anything to make me feel even worse. Thank you

 I think it's a little over the top to accuse the OP of lying. You can tell by her cadence that she is an ESOL investor and I suspect she genuinely got taken by the "invest out of state" mentality. That happens to a lot of new investors. At least she is sucking it up and trying to make lemonade here. 

Right now she is OOP about $100k. If she can sell for $120k that more or less wipes out her mortgage so she ends up losing $100k. You can recover from losing $100k (I speak from experience) but how long depends on your current means. 

Original poster: if you don't want to keep it as a rental property, it doesn't make sense to put the $30k in it. You might just as well sell it for the $120k and walk. If you plan on keeping it as a rental - and you might want to talk to some experienced Clevelanders first - then you'll have to eat the $30k as well to make it work. That's really the crux of it, as far as I can see.

@James Wise

 Something does not add up with this for the reasons I mentioned. 

 She's not going to lose $220k. She's going to lose everything she spent on rehab and her down payment. That's about $100k. She owes $119k on it, so if she sells it to whomever has offered to buy it for $120k the mortgage will be wiped clean but so will all of her equity. As I said her cadence makes it a little difficult to follow but I get it. 

 Yes she is detailed but again, something does not add up. Why does she have " violations" from the city. Why would the city even be involved. Why would a realtor put their rep on the line and sell this for 90k to much? Why would it need all new wiring ? Why would she pay 12k for two furnaces and HW tanks, when the cost is about 6k- 7k, ? I haver offered to help and walk it for her to get her facts but yet crickets. You would think one would want someone to have a look . 

 Everything listed there is very plausible. In DC, Baltimore and several other landlord hostile cities they issue fines for the fun of it and a thousand times more. You are asking why would an agent put their rep on the line? Because they are greedy and a lair who saw an inexperienced mark they could milk. Why need all new wiring? Not sure what you mean; this is very common in older homes. Why would she pay 12k for furnaces? Its not that far off for two, and a heater, plus installation with a little price gouging. People who dont understand the cost of stuff will always run into people who have zero issue exploiting it. Not sure why this doesnt add up because Ive seen stuff like this from the average newbie often. Its not hard to see that in addition to having little clue in regards to real estate, there could also be language barriers. There are people who come on here to lie for no reason but they usually vanish after one post and what she is saying happens to many. 

I do not know any realtor that would sell this property for 90k over the true value Also 12k for two furnaces is 8KISH to high. There 1700 INSTALLED EACH. Call it 4k, HW tanks are 1200ish each 2500, FAR away from 12k.  I am sticking to my statements; THIS post does not add up. Again, I offered to walk it for her but got crickets. You would think one would want to know the real story. 
All the best 

[Summer Dechanukul]

Quote from @Bob Stevens:

Quote from @JD Martin:

Quote from @Bob Stevens:

Quote from @JD Martin:

Quote from @Summer Dechanukul:

Quote from @Bob Stevens:

Quote from @Summer Dechanukul:

Quote from @Bob Stevens:

Quote from @Summer Dechanukul:

Quote from @Bob Stevens:

Quote from @Summer Dechanukul:

Hi everyone!

I'm Summer (Newbie for real estate) 

My stupidity was I 100% trusted the realtor when he said the house (duplex) is a good and I don't need an inspector and I did believed him. Then I sign everything and took this deal with no inspection. Later I got the violation letter , a long list of what needs to be fixed which was a lot. I have done changed the HVAC for both unit, brand new and for HVAC the inspection was already passed. and I changed all windows for both unit. also I changed the new electric panels and changed all outlets for both unit but the inspection said I needs to run all electric the whole house which means I have to pay more for run the electric and replace all drywalls, that means I have to put lots more money into it.

the question is should I go further or should I cut loss? It's very tough decision for me.

- If I should cut loss. I got offered $120,000 with no inspection now

  but  I already spent $107,900 and I have mortgage balance $119,000 that I have to close 

  which means I'm going to lose around $115,000

- if I should go further 

  I have to pay more for run all electric $15,000

  Replace all drywalls $3,000 

  Plumbling $3,500

  and after I got all these done. I have to do the building inspection which I'm not sure how much more that I have to put the money into? Any Idea about the foundation?

  If I can make it done. the rent around that area for 2 units will be $1,700 monthly 

Option 1 = Cut and loss around $115,000        (which is so painful T_T)

Option 2 = Put more money $30,000 or more and get a rent $1,700 a monthly 

Please help me with my stupidity. Please give me advice. I would like to get away from this nightmare.

Thank you so much for your help.

 Ok so IMO there are two sides to this story. I find it VERY difficult to believe the agent told you this property needed nothing. But you are telling us al it needs ALL new drywall, and plumbing why ?> All new electric why? I do not want to list all the items you mentioned but heck IMO there is much more to this story. I have never seen an agent, not send photos along with videos of the property, hmmm, Send me the address along with the lock box. I will have one of my guys check it out.  

 He sent me pictures and video but only looking good one with such as, repaint, new counter top, new bathroom. but as I said I the post. it's my mistake for trusting the realtor. Just looked at the pictures and video he sent and believe he said that the house is in a good condition and I don't need and inspector since it renovated the whole house. After I signed and closing the house, I got the violation letter from the city. This was that happened. Again, I posted that was my stupidity and I just need and advice from experienced person who could guide me. What's the point of me lying in this post?

Which city? 

 Cleveland OH 44106

Ok this post is making more and more LESS sense. Why would the city be involved? Why would the city even know about these repairs? 

Also 

I already spent $107,900 and I have mortgage balance $119,000 that I have to close

which means I'm going to lose around $115,000  ????????

Also, you said you were offered 120k as is in that area? HMMM, that is way over the true value, again this post is making less sense, 

 the purchase price $165k

Closing day I paid $51,290.22

I paid for HVAC $12,000

The expenses on 2023 Mortgage, electric, appliances and everything $23,806

The expenses on 2024 until now for changed all windows, fixed hand rail, step, basement leaked electric panel, mortgage, electric and everything $20,777.38

the mortgage balance right now in my account is $119,000

someone offered me $120k as is.

I got all paper and proved of everything. The buyer still contract me today asking me if I still want to sell it this price.

What's the point of lying?

This is nightmare for me. It's a hard time for me. I posted because I need an advice from experience person to get away with this nightmare. Instead of give me an advice but you said like I'm a liar. I wish this is not real story too. If you can not give me an advice better don't say anything to make me feel even worse. Thank you

 I think it's a little over the top to accuse the OP of lying. You can tell by her cadence that she is an ESOL investor and I suspect she genuinely got taken by the "invest out of state" mentality. That happens to a lot of new investors. At least she is sucking it up and trying to make lemonade here. 

Right now she is OOP about $100k. If she can sell for $120k that more or less wipes out her mortgage so she ends up losing $100k. You can recover from losing $100k (I speak from experience) but how long depends on your current means. 

Original poster: if you don't want to keep it as a rental property, it doesn't make sense to put the $30k in it. You might just as well sell it for the $120k and walk. If you plan on keeping it as a rental - and you might want to talk to some experienced Clevelanders first - then you'll have to eat the $30k as well to make it work. That's really the crux of it, as far as I can see.

@James Wise

 Something does not add up with this for the reasons I mentioned. 

 She's not going to lose $220k. She's going to lose everything she spent on rehab and her down payment. That's about $100k. She owes $119k on it, so if she sells it to whomever has offered to buy it for $120k the mortgage will be wiped clean but so will all of her equity. As I said her cadence makes it a little difficult to follow but I get it. 

 Yes she is detailed but again, something does not add up. Why does she have " violations" from the city. Why would the city even be involved. Why would a realtor put their rep on the line and sell this for 90k to much? Why would it need all new wiring ? Why would she pay 12k for two furnaces and HW tanks, when the cost is about 6k- 7k, ? I haver offered to help and walk it for her to get her facts but yet crickets. You would think one would want someone to have a look . 

 Would you like me to send you the violation list from the city to you? After I got a violation letter from the city. I flew to Cleveland to the city and told them that I got a violation letter and what do I have to do?. He said I need to request a permit for the inspector to come in to inspect the house. That time I was so sure I will pass for any violation since it was renovated the whole house but end up I got a long list of what needs to be done. For 2 band new furnaces I just hired the certify contractor and I did not know it should not cost $12k. I just want it to pass the violation. I said I'm a newbie especially in that area. I did not know how much it suppose to. I'm afraid of everything now. You agents me and think I'm a liar and now offered me to help and walk it for me. After I just trust the wrong person and you agents me that I'm a liar. If you were me and try to understand my feeling what I have been through you will understand. I thought I will get an advice or sharing a story of experienced person but instead I have to explain myself that I'm not a liar and need to get away with this. If you need a proved of the violation letter I'll send it to you. So tired talking to you now. I spent a couple day explaining myself for no reason because It doesn't help me with this situation by explaining myself that I'm not a liar. Please let me know if you want a violation list. and if you don't believe my story, just ignore my post. Don't need to make me feel even worse by this painful comment. Thank you

[Summer Dechanukul]

Quote from @JD Martin:

Quote from @Bob Stevens:

Quote from @JD Martin:

Quote from @Summer Dechanukul:

Quote from @Bob Stevens:

Quote from @Summer Dechanukul:

Quote from @Bob Stevens:

Quote from @Summer Dechanukul:

Quote from @Bob Stevens:

Quote from @Summer Dechanukul:

Hi everyone!

I'm Summer (Newbie for real estate) 

My stupidity was I 100% trusted the realtor when he said the house (duplex) is a good and I don't need an inspector and I did believed him. Then I sign everything and took this deal with no inspection. Later I got the violation letter , a long list of what needs to be fixed which was a lot. I have done changed the HVAC for both unit, brand new and for HVAC the inspection was already passed. and I changed all windows for both unit. also I changed the new electric panels and changed all outlets for both unit but the inspection said I needs to run all electric the whole house which means I have to pay more for run the electric and replace all drywalls, that means I have to put lots more money into it.

the question is should I go further or should I cut loss? It's very tough decision for me.

- If I should cut loss. I got offered $120,000 with no inspection now

  but  I already spent $107,900 and I have mortgage balance $119,000 that I have to close 

  which means I'm going to lose around $115,000

- if I should go further 

  I have to pay more for run all electric $15,000

  Replace all drywalls $3,000 

  Plumbling $3,500

  and after I got all these done. I have to do the building inspection which I'm not sure how much more that I have to put the money into? Any Idea about the foundation?

  If I can make it done. the rent around that area for 2 units will be $1,700 monthly 

Option 1 = Cut and loss around $115,000        (which is so painful T_T)

Option 2 = Put more money $30,000 or more and get a rent $1,700 a monthly 

Please help me with my stupidity. Please give me advice. I would like to get away from this nightmare.

Thank you so much for your help.

 Ok so IMO there are two sides to this story. I find it VERY difficult to believe the agent told you this property needed nothing. But you are telling us al it needs ALL new drywall, and plumbing why ?> All new electric why? I do not want to list all the items you mentioned but heck IMO there is much more to this story. I have never seen an agent, not send photos along with videos of the property, hmmm, Send me the address along with the lock box. I will have one of my guys check it out.  

 He sent me pictures and video but only looking good one with such as, repaint, new counter top, new bathroom. but as I said I the post. it's my mistake for trusting the realtor. Just looked at the pictures and video he sent and believe he said that the house is in a good condition and I don't need and inspector since it renovated the whole house. After I signed and closing the house, I got the violation letter from the city. This was that happened. Again, I posted that was my stupidity and I just need and advice from experienced person who could guide me. What's the point of me lying in this post?

Which city? 

 Cleveland OH 44106

Ok this post is making more and more LESS sense. Why would the city be involved? Why would the city even know about these repairs? 

Also 

I already spent $107,900 and I have mortgage balance $119,000 that I have to close

which means I'm going to lose around $115,000  ????????

Also, you said you were offered 120k as is in that area? HMMM, that is way over the true value, again this post is making less sense, 

 the purchase price $165k

Closing day I paid $51,290.22

I paid for HVAC $12,000

The expenses on 2023 Mortgage, electric, appliances and everything $23,806

The expenses on 2024 until now for changed all windows, fixed hand rail, step, basement leaked electric panel, mortgage, electric and everything $20,777.38

the mortgage balance right now in my account is $119,000

someone offered me $120k as is.

I got all paper and proved of everything. The buyer still contract me today asking me if I still want to sell it this price.

What's the point of lying?

This is nightmare for me. It's a hard time for me. I posted because I need an advice from experience person to get away with this nightmare. Instead of give me an advice but you said like I'm a liar. I wish this is not real story too. If you can not give me an advice better don't say anything to make me feel even worse. Thank you

 I think it's a little over the top to accuse the OP of lying. You can tell by her cadence that she is an ESOL investor and I suspect she genuinely got taken by the "invest out of state" mentality. That happens to a lot of new investors. At least she is sucking it up and trying to make lemonade here. 

Right now she is OOP about $100k. If she can sell for $120k that more or less wipes out her mortgage so she ends up losing $100k. You can recover from losing $100k (I speak from experience) but how long depends on your current means. 

Original poster: if you don't want to keep it as a rental property, it doesn't make sense to put the $30k in it. You might just as well sell it for the $120k and walk. If you plan on keeping it as a rental - and you might want to talk to some experienced Clevelanders first - then you'll have to eat the $30k as well to make it work. That's really the crux of it, as far as I can see.

@James Wise

 Something does not add up with this for the reasons I mentioned. 

 She's not going to lose $220k. She's going to lose everything she spent on rehab and her down payment. That's about $100k. She owes $119k on it, so if she sells it to whomever has offered to buy it for $120k the mortgage will be wiped clean but so will all of her equity. As I said her cadence makes it a little difficult to follow but I get it. 

 Thank you so much for explaining for me

[Carlos Ptriawan]

Quote from @Summer Dechanukul:

Quote from @Bob Stevens:

Quote from @JD Martin:

Quote from @Bob Stevens:

Quote from @JD Martin:

Quote from @Summer Dechanukul:

Quote from @Bob Stevens:

Quote from @Summer Dechanukul:

Quote from @Bob Stevens:

Quote from @Summer Dechanukul:

Quote from @Bob Stevens:

Quote from @Summer Dechanukul:

Hi everyone!

I'm Summer (Newbie for real estate) 

My stupidity was I 100% trusted the realtor when he said the house (duplex) is a good and I don't need an inspector and I did believed him. Then I sign everything and took this deal with no inspection. Later I got the violation letter , a long list of what needs to be fixed which was a lot. I have done changed the HVAC for both unit, brand new and for HVAC the inspection was already passed. and I changed all windows for both unit. also I changed the new electric panels and changed all outlets for both unit but the inspection said I needs to run all electric the whole house which means I have to pay more for run the electric and replace all drywalls, that means I have to put lots more money into it.

the question is should I go further or should I cut loss? It's very tough decision for me.

- If I should cut loss. I got offered $120,000 with no inspection now

  but  I already spent $107,900 and I have mortgage balance $119,000 that I have to close 

  which means I'm going to lose around $115,000

- if I should go further 

  I have to pay more for run all electric $15,000

  Replace all drywalls $3,000 

  Plumbling $3,500

  and after I got all these done. I have to do the building inspection which I'm not sure how much more that I have to put the money into? Any Idea about the foundation?

  If I can make it done. the rent around that area for 2 units will be $1,700 monthly 

Option 1 = Cut and loss around $115,000        (which is so painful T_T)

Option 2 = Put more money $30,000 or more and get a rent $1,700 a monthly 

Please help me with my stupidity. Please give me advice. I would like to get away from this nightmare.

Thank you so much for your help.

 Ok so IMO there are two sides to this story. I find it VERY difficult to believe the agent told you this property needed nothing. But you are telling us al it needs ALL new drywall, and plumbing why ?> All new electric why? I do not want to list all the items you mentioned but heck IMO there is much more to this story. I have never seen an agent, not send photos along with videos of the property, hmmm, Send me the address along with the lock box. I will have one of my guys check it out.  

 He sent me pictures and video but only looking good one with such as, repaint, new counter top, new bathroom. but as I said I the post. it's my mistake for trusting the realtor. Just looked at the pictures and video he sent and believe he said that the house is in a good condition and I don't need and inspector since it renovated the whole house. After I signed and closing the house, I got the violation letter from the city. This was that happened. Again, I posted that was my stupidity and I just need and advice from experienced person who could guide me. What's the point of me lying in this post?

Which city? 

 Cleveland OH 44106

Ok this post is making more and more LESS sense. Why would the city be involved? Why would the city even know about these repairs? 

Also 

I already spent $107,900 and I have mortgage balance $119,000 that I have to close

which means I'm going to lose around $115,000  ????????

Also, you said you were offered 120k as is in that area? HMMM, that is way over the true value, again this post is making less sense, 

 the purchase price $165k

Closing day I paid $51,290.22

I paid for HVAC $12,000

The expenses on 2023 Mortgage, electric, appliances and everything $23,806

The expenses on 2024 until now for changed all windows, fixed hand rail, step, basement leaked electric panel, mortgage, electric and everything $20,777.38

the mortgage balance right now in my account is $119,000

someone offered me $120k as is.

I got all paper and proved of everything. The buyer still contract me today asking me if I still want to sell it this price.

What's the point of lying?

This is nightmare for me. It's a hard time for me. I posted because I need an advice from experience person to get away with this nightmare. Instead of give me an advice but you said like I'm a liar. I wish this is not real story too. If you can not give me an advice better don't say anything to make me feel even worse. Thank you

 I think it's a little over the top to accuse the OP of lying. You can tell by her cadence that she is an ESOL investor and I suspect she genuinely got taken by the "invest out of state" mentality. That happens to a lot of new investors. At least she is sucking it up and trying to make lemonade here. 

Right now she is OOP about $100k. If she can sell for $120k that more or less wipes out her mortgage so she ends up losing $100k. You can recover from losing $100k (I speak from experience) but how long depends on your current means. 

Original poster: if you don't want to keep it as a rental property, it doesn't make sense to put the $30k in it. You might just as well sell it for the $120k and walk. If you plan on keeping it as a rental - and you might want to talk to some experienced Clevelanders first - then you'll have to eat the $30k as well to make it work. That's really the crux of it, as far as I can see.

@James Wise

 Something does not add up with this for the reasons I mentioned. 

 She's not going to lose $220k. She's going to lose everything she spent on rehab and her down payment. That's about $100k. She owes $119k on it, so if she sells it to whomever has offered to buy it for $120k the mortgage will be wiped clean but so will all of her equity. As I said her cadence makes it a little difficult to follow but I get it. 

 Yes she is detailed but again, something does not add up. Why does she have " violations" from the city. Why would the city even be involved. Why would a realtor put their rep on the line and sell this for 90k to much? Why would it need all new wiring ? Why would she pay 12k for two furnaces and HW tanks, when the cost is about 6k- 7k, ? I haver offered to help and walk it for her to get her facts but yet crickets. You would think one would want someone to have a look . 

 Would you like me to send you the violation list from the city to you? After I got a violation letter from the city. I flew to Cleveland to the city and told them that I got a violation letter and what do I have to do?. He said I need to request a permit for the inspector to come in to inspect the house. That time I was so sure I will pass for any violation since it was renovated the whole house but end up I got a long list of what needs to be done. For 2 band new furnaces I just hired the certify contractor and I did not know it should not cost $12k. I just want it to pass the violation. I said I'm a newbie especially in that area. I did not know how much it suppose to. I'm afraid of everything now. You agents me and think I'm a liar and now offered me to help and walk it for me. After I just trust the wrong person and you agents me that I'm a liar. If you were me and try to understand my feeling what I have been through you will understand. I thought I will get an advice or sharing a story of experienced person but instead I have to explain myself that I'm not a liar and need to get away with this. If you need a proved of the violation letter I'll send it to you. So tired talking to you now. I spent a couple day explaining myself for no reason because It doesn't help me with this situation by explaining myself that I'm not a liar. Please let me know if you want a violation list. and if you don't believe my story, just ignore my post. Don't need to make me feel even worse by this painful comment. Thank you

 I had violation too by the city in the midwest,total cost is $14k, it took one year to finish the job, and some court/judge hearing. Somehow I am able to sell it for a profit.

but knowing this reality i would just invest locally in nocal, even if there's forced repair i am still able to navigate it well.

[Summer Dechanukul]

Quote from @Mark Cruse:

Quote from @Bruce Woodruff:

Quote from @Mark Cruse:

There are people who come on here to lie for no reason but they usually vanish after one post and what she is saying happens to many. 

Good points Mark. At the very least this post may be a good lesson for other newbies.

Yes, this should serve as a lesson to the others. Maybe not to this extent but elements of this happens to a newbie and even experienced people probably every few seconds. There is a lady in another topic asking how can you understand the numbers for a flip and how much stuff will cost. It would be very easy to roll up on a contractor who knows she doesnt know, who will hype that thing double of what it should be or more. It wasnt even that long ago that a realtor directly lied to me because they were desperate and dishonest. This is the real world and I hope the kind of newbies who surf from trend to trend believing REI is just another easy get rich quick gig, they will study real world scenarios like this.

 Thank you so much for understanding. I'm a bit confused now. first after I read all the comment. I think I want to make it done and rent it out but I just saw the investor in that area said the purchase price should be $120k and the rent $1300, so now I just thinking about should I sell it and loss $115k. I got 3 offered last week of $115k $120k and $130k and $120k and $130k just pulled it offered out yesterday at 8pm. After I got and offered last week and calculated the number I might loss $115k if I sell it. It's heard breaking for me. That's the reason why I make a decision to post my story because I don't have the experienced person around me. So confusing now.

[Victor S.]

sounds like her realtor was Clayton Morris... oh wait, he's a big time youtuber now lol 

what a mess this thread is. OP, what you need to do is figure out the true value of this property and go from there. From what the locals are saying, you're in red no matter what, so it's up to you to figure out the least amount of damage you can take on. sounds like you're dumping more good cash after bad at this point.

good luck.

[Patricia Steiner]

@Summer Dechanukul

I hate that this happened to you and I hope that you will report the realtor to their Broker at a minimum.  Unfortunately, there are a lot of everyone - realtors, contractors, lenders, insurance brokers - who are not qualified to be advising others on real estate.  You haven't made a 'fatal mistake,' just a lesson learned...there will be more.  You can still turn this around and move forward to something far better.  I  recommend making the repairs; prepare a Scope of Work. If you don't have one (the form), the are available for free download online.  Get real specific on what needs to happen - step by step - and get bids for each job. Have each contractor sign off on the Scope of Work for their specialty and manage to it.  This will save you time and money while expediating the repairs.

Once you decide to settle into the current reality, dig in and move forward, all this will be far behind you.  You got this...

[Victor S.]

Quote from @Patricia Steiner:

@Summer Dechanukul

I hate that this happened to you and I hope that you will report the realtor to their Broker at a minimum.  Unfortunately, there are a lot of everyone - realtors, contractors, lenders, insurance brokers - who are not qualified to be advising others on real estate.  You haven't made a 'fatal mistake,' just a lesson learned...there will be more.  You can still turn this around and move forward to something far better.  I  recommend making the repairs; prepare a Scope of Work. If you don't have one (the form), the are available for free download online.  Get real specific on what needs to happen - step by step - and get bids for each job. Have each contractor sign off on the Scope of Work for their specialty and manage to it.  This will save you time and money while expediating the repairs.

Once you decide to settle into the current reality, dig in and move forward, all this will be far behind you.  You got this...

 why, tho? why keep throwing more good cash after the bad? you want her to dump another $30k in and then "potentially" cash flow a couple hundred a month, all while stuck near 200k?

[Bob Stevens]

Quote from @Bruce Woodruff:

Quote from @Mark Cruse:

There are people who come on here to lie for no reason but they usually vanish after one post and what she is saying happens to many. 

Good points Mark. At the very least this post may be a good lesson for other newbies.

 I have posted MANY times " never do a deal without a team" Especially in Cleveland. 

[Mark Cruse]

Quote from @Summer Dechanukul:

Quote from @Mark Cruse:

Quote from @Bruce Woodruff:

Quote from @Mark Cruse:

There are people who come on here to lie for no reason but they usually vanish after one post and what she is saying happens to many. 

Good points Mark. At the very least this post may be a good lesson for other newbies.

Yes, this should serve as a lesson to the others. Maybe not to this extent but elements of this happens to a newbie and even experienced people probably every few seconds. There is a lady in another topic asking how can you understand the numbers for a flip and how much stuff will cost. It would be very easy to roll up on a contractor who knows she doesnt know, who will hype that thing double of what it should be or more. It wasnt even that long ago that a realtor directly lied to me because they were desperate and dishonest. This is the real world and I hope the kind of newbies who surf from trend to trend believing REI is just another easy get rich quick gig, they will study real world scenarios like this.

 Thank you so much for understanding. I'm a bit confused now. first after I read all the comment. I think I want to make it done and rent it out but I just saw the investor in that area said the purchase price should be $120k and the rent $1300, so now I just thinking about should I sell it and loss $115k. I got 3 offered last week of $115k $120k and $130k and $120k and $130k just pulled it offered out yesterday at 8pm. After I got and offered last week and calculated the number I might loss $115k if I sell it. It's heard breaking for me. That's the reason why I make a decision to post my story because I don't have the experienced person around me. So confusing now.

You have been given all kinds of advice in many forms here. You are going to have to make a decision eventually. For me personally, I have no advice there. I feel its nearly impossible to build a strategy until you know what numbers you are working with. Everything here seems fuzzy and insure. You need to fully understand and be precise in what the after repair value will be (ARV). You have to have a full scope of everything you will need to repair and how much it would cost. You cant guess, hope or depend on what others say. For all you know to clear all code violations it can be 10k or maybe 100k. Who knows? After that, you may be subject to other forms of inspections that uncover more. What if that is another 30k? There are all kinds of stuff behind those wall that could be waiting to uncover themselves. Do you know how long this will take? What if you cant complete in a yea? No tenants or cash flow. Can you cover all these repairs and holding costs for a long time? I mean I have seen people acquire 100k homes but after everything was done (fines, unknown repairs, theft etc), they were all in for 350k. Not good since the home is only work 140k. None of this seems concrete and there´s no solid way to make any logical conclusions.

[Patricia Steiner]

@Victor S.

A loss is a loss and the one this investor is facing is $115k; there's no upside to that.  It's just done and ugly.  I would prefer, personally, to invest a substantially lessor amount to fix the property to give the option of either retaining it as a rental and/or selling it without the loss or a much lessor one.  There is no one right answer we can give this investor. We all have different pain thresholds and experience in creating value. 

Best...

[Summer Dechanukul]

Quote from @Mark Cruse:

Quote from @Summer Dechanukul:

Quote from @Mark Cruse:

Quote from @Bruce Woodruff:

Quote from @Mark Cruse:

There are people who come on here to lie for no reason but they usually vanish after one post and what she is saying happens to many. 

Good points Mark. At the very least this post may be a good lesson for other newbies.

Yes, this should serve as a lesson to the others. Maybe not to this extent but elements of this happens to a newbie and even experienced people probably every few seconds. There is a lady in another topic asking how can you understand the numbers for a flip and how much stuff will cost. It would be very easy to roll up on a contractor who knows she doesnt know, who will hype that thing double of what it should be or more. It wasnt even that long ago that a realtor directly lied to me because they were desperate and dishonest. This is the real world and I hope the kind of newbies who surf from trend to trend believing REI is just another easy get rich quick gig, they will study real world scenarios like this.

 Thank you so much for understanding. I'm a bit confused now. first after I read all the comment. I think I want to make it done and rent it out but I just saw the investor in that area said the purchase price should be $120k and the rent $1300, so now I just thinking about should I sell it and loss $115k. I got 3 offered last week of $115k $120k and $130k and $120k and $130k just pulled it offered out yesterday at 8pm. After I got and offered last week and calculated the number I might loss $115k if I sell it. It's heard breaking for me. That's the reason why I make a decision to post my story because I don't have the experienced person around me. So confusing now.

You have been given all kinds of advice in many forms here. You are going to have to make a decision eventually. For me personally, I have no advice there. I feel its nearly impossible to build a strategy until you know what numbers you are working with. Everything here seems fuzzy and insure. You need to fully understand and be precise in what the after repair value will be (ARV). You have to have a full scope of everything you will need to repair and how much it would cost. You cant guess, hope or depend on what others say. For all you know to clear all code violations it can be 10k or maybe 100k. Who knows? After that, you may be subject to other forms of inspections that uncover more. What if that is another 30k? There are all kinds of stuff behind those wall that could be waiting to uncover themselves. Do you know how long this will take? What if you cant complete in a yea? No tenants or cash flow. Can you cover all these repairs and holding costs for a long time? I mean I have seen people acquire 100k homes but after everything was done (fines, unknown repairs, theft etc), they were all in for 350k. Not good since the home is only work 140k. None of this seems concrete and there´s no solid way to make any logical conclusions.

 Thank you so much

[Bruce Woodruff]

Quote from @Mark Cruse:

You have been given all kinds of advice in many forms here. You are going to have to make a decision eventually. For me personally, I have no advice there. I feel its nearly impossible to build a strategy until you know what numbers you are working with. Everything here seems  fuzzy and insure. You need to fully understand and be precise in what the after repair value will be (ARV). You have to have a full scope of everything you will need to repair and how much it would cost. You cant guess, hope or depend on what others say. For all you know to clear all code violations it can be 10k or maybe 100k. Who knows? After that, you may be subject to other forms of inspections that uncover more. What if that is another 30k? There are all kinds of stuff behind those wall that could be waiting to uncover themselves. Do you know how long this will take? What if you cant complete in a yea? No tenants or cash flow. Can you cover all these repairs and holding costs for a long time? I mean I have seen people acquire 100k homes but after everything was done (fines, unknown repairs, theft etc), they were all in for 350k. Not good since the home is only work 140k. None of this seems concrete and there´s no solid way to make any logical conclusions. 

Mark is right. As I believe I mentioned before, no one can make a decision before you know - to the penny - how much your 'all-in' number is.

This means having the City give you a comprehensive list of violations and the required fixes. Then a General Contr. giving you an actual proposal with an exact dollar amount to remedy ALL of the violations.

Only then can you (or anyone else for that matter) be able to decide if it is financially better for you to hold the house and eventually recoup your losses, or cut the cord and dump it now.

So unless you already know that you are going to move on, then your next steps are clear and cost you nothing. #1 - The City, #2 - A GC

[Ray Hage]

Quote from @Jay Hinrichs:

my wife just sold a property for one of our new construction buyers.

this client also got talked into buying the property without a home inspection.

so she had to put a new roof on it new Hvac upgrade electrical panel and a plumbing issue.

the agent that sold it to her is known to us and he is a slime ball no question.

bottom line your the client you dictate what you are going to do or not do never let the agent tell you what to do.. 

As an agent, I do try to advise my clients to avoid certain issues but they don't always listen so all I can do is try to get them the best deal possible under the circumstances. This is what agents need to be doing. Anyone can put together paperwork.

The agents that give us all a bad name try to dictate the deal and try to get to closing table no matter who gets burned. They just are greedy slime balls like in the case you described.

I'll be honest though, I have tried to talk clients out of buying a specific house due to major issues or bad location but they don't usually listen. I suppose they are willing to take big risks on their biggest asset. All I know is I tried and don't have a guilty conscience. 

@Summer Dechanukul perhaps you can get a good contractor through this thread. It seems a lot of local agents/investors responded. Try to get one side completed at lease to have income and then the other to have it totally full. If you end up selling, perhaps, it won't be a big loss

[Michael P.]

You have a mortgage on it so you must have had an appraisal done? What was the appraised value?
Also if you sell make sure a quality agent is representing you. 

[Mike C.]

Quote from @Bob Stevens:

Quote from @JD Martin:

Quote from @Bob Stevens:

Quote from @JD Martin:

Quote from @Summer Dechanukul:

Quote from @Bob Stevens:

Quote from @Summer Dechanukul:

Quote from @Bob Stevens:

Quote from @Summer Dechanukul:

Quote from @Bob Stevens:

Quote from @Summer Dechanukul:

Hi everyone!

I'm Summer (Newbie for real estate) 

My stupidity was I 100% trusted the realtor when he said the house (duplex) is a good and I don't need an inspector and I did believed him. Then I sign everything and took this deal with no inspection. Later I got the violation letter , a long list of what needs to be fixed which was a lot. I have done changed the HVAC for both unit, brand new and for HVAC the inspection was already passed. and I changed all windows for both unit. also I changed the new electric panels and changed all outlets for both unit but the inspection said I needs to run all electric the whole house which means I have to pay more for run the electric and replace all drywalls, that means I have to put lots more money into it.

the question is should I go further or should I cut loss? It's very tough decision for me.

- If I should cut loss. I got offered $120,000 with no inspection now

  but  I already spent $107,900 and I have mortgage balance $119,000 that I have to close 

  which means I'm going to lose around $115,000

- if I should go further 

  I have to pay more for run all electric $15,000

  Replace all drywalls $3,000 

  Plumbling $3,500

  and after I got all these done. I have to do the building inspection which I'm not sure how much more that I have to put the money into? Any Idea about the foundation?

  If I can make it done. the rent around that area for 2 units will be $1,700 monthly 

Option 1 = Cut and loss around $115,000        (which is so painful T_T)

Option 2 = Put more money $30,000 or more and get a rent $1,700 a monthly 

Please help me with my stupidity. Please give me advice. I would like to get away from this nightmare.

Thank you so much for your help.

 Ok so IMO there are two sides to this story. I find it VERY difficult to believe the agent told you this property needed nothing. But you are telling us al it needs ALL new drywall, and plumbing why ?> All new electric why? I do not want to list all the items you mentioned but heck IMO there is much more to this story. I have never seen an agent, not send photos along with videos of the property, hmmm, Send me the address along with the lock box. I will have one of my guys check it out.  

 He sent me pictures and video but only looking good one with such as, repaint, new counter top, new bathroom. but as I said I the post. it's my mistake for trusting the realtor. Just looked at the pictures and video he sent and believe he said that the house is in a good condition and I don't need and inspector since it renovated the whole house. After I signed and closing the house, I got the violation letter from the city. This was that happened. Again, I posted that was my stupidity and I just need and advice from experienced person who could guide me. What's the point of me lying in this post?

Which city? 

 Cleveland OH 44106

Ok this post is making more and more LESS sense. Why would the city be involved? Why would the city even know about these repairs? 

Also 

I already spent $107,900 and I have mortgage balance $119,000 that I have to close

which means I'm going to lose around $115,000  ????????

Also, you said you were offered 120k as is in that area? HMMM, that is way over the true value, again this post is making less sense, 

 the purchase price $165k

Closing day I paid $51,290.22

I paid for HVAC $12,000

The expenses on 2023 Mortgage, electric, appliances and everything $23,806

The expenses on 2024 until now for changed all windows, fixed hand rail, step, basement leaked electric panel, mortgage, electric and everything $20,777.38

the mortgage balance right now in my account is $119,000

someone offered me $120k as is.

I got all paper and proved of everything. The buyer still contract me today asking me if I still want to sell it this price.

What's the point of lying?

This is nightmare for me. It's a hard time for me. I posted because I need an advice from experience person to get away with this nightmare. Instead of give me an advice but you said like I'm a liar. I wish this is not real story too. If you can not give me an advice better don't say anything to make me feel even worse. Thank you

 I think it's a little over the top to accuse the OP of lying. You can tell by her cadence that she is an ESOL investor and I suspect she genuinely got taken by the "invest out of state" mentality. That happens to a lot of new investors. At least she is sucking it up and trying to make lemonade here. 

Right now she is OOP about $100k. If she can sell for $120k that more or less wipes out her mortgage so she ends up losing $100k. You can recover from losing $100k (I speak from experience) but how long depends on your current means. 

Original poster: if you don't want to keep it as a rental property, it doesn't make sense to put the $30k in it. You might just as well sell it for the $120k and walk. If you plan on keeping it as a rental - and you might want to talk to some experienced Clevelanders first - then you'll have to eat the $30k as well to make it work. That's really the crux of it, as far as I can see.

@James Wise

 Something does not add up with this for the reasons I mentioned. 

 She's not going to lose $220k. She's going to lose everything she spent on rehab and her down payment. That's about $100k. She owes $119k on it, so if she sells it to whomever has offered to buy it for $120k the mortgage will be wiped clean but so will all of her equity. As I said her cadence makes it a little difficult to follow but I get it. 

 Yes she is detailed but again, something does not add up. Why does she have " violations" from the city. Why would the city even be involved. Why would a realtor put their rep on the line and sell this for 90k to much? Why would it need all new wiring ? Why would she pay 12k for two furnaces and HW tanks, when the cost is about 6k- 7k, ? I haver offered to help and walk it for her to get her facts but yet crickets. You would think one would want someone to have a look . 

That is honestly really generous of you to have someone take a look.  Most people would not offer something like that.

[Bob Stevens]

Quote from @Mike C.:

Quote from @Bob Stevens:

Quote from @JD Martin:

Quote from @Bob Stevens:

Quote from @JD Martin:

Quote from @Summer Dechanukul:

Quote from @Bob Stevens:

Quote from @Summer Dechanukul:

Quote from @Bob Stevens:

Quote from @Summer Dechanukul:

Quote from @Bob Stevens:

Quote from @Summer Dechanukul:

Hi everyone!

I'm Summer (Newbie for real estate) 

My stupidity was I 100% trusted the realtor when he said the house (duplex) is a good and I don't need an inspector and I did believed him. Then I sign everything and took this deal with no inspection. Later I got the violation letter , a long list of what needs to be fixed which was a lot. I have done changed the HVAC for both unit, brand new and for HVAC the inspection was already passed. and I changed all windows for both unit. also I changed the new electric panels and changed all outlets for both unit but the inspection said I needs to run all electric the whole house which means I have to pay more for run the electric and replace all drywalls, that means I have to put lots more money into it.

the question is should I go further or should I cut loss? It's very tough decision for me.

- If I should cut loss. I got offered $120,000 with no inspection now

  but  I already spent $107,900 and I have mortgage balance $119,000 that I have to close 

  which means I'm going to lose around $115,000

- if I should go further 

  I have to pay more for run all electric $15,000

  Replace all drywalls $3,000 

  Plumbling $3,500

  and after I got all these done. I have to do the building inspection which I'm not sure how much more that I have to put the money into? Any Idea about the foundation?

  If I can make it done. the rent around that area for 2 units will be $1,700 monthly 

Option 1 = Cut and loss around $115,000        (which is so painful T_T)

Option 2 = Put more money $30,000 or more and get a rent $1,700 a monthly 

Please help me with my stupidity. Please give me advice. I would like to get away from this nightmare.

Thank you so much for your help.

 Ok so IMO there are two sides to this story. I find it VERY difficult to believe the agent told you this property needed nothing. But you are telling us al it needs ALL new drywall, and plumbing why ?> All new electric why? I do not want to list all the items you mentioned but heck IMO there is much more to this story. I have never seen an agent, not send photos along with videos of the property, hmmm, Send me the address along with the lock box. I will have one of my guys check it out.  

 He sent me pictures and video but only looking good one with such as, repaint, new counter top, new bathroom. but as I said I the post. it's my mistake for trusting the realtor. Just looked at the pictures and video he sent and believe he said that the house is in a good condition and I don't need and inspector since it renovated the whole house. After I signed and closing the house, I got the violation letter from the city. This was that happened. Again, I posted that was my stupidity and I just need and advice from experienced person who could guide me. What's the point of me lying in this post?

Which city? 

 Cleveland OH 44106

Ok this post is making more and more LESS sense. Why would the city be involved? Why would the city even know about these repairs? 

Also 

I already spent $107,900 and I have mortgage balance $119,000 that I have to close

which means I'm going to lose around $115,000  ????????

Also, you said you were offered 120k as is in that area? HMMM, that is way over the true value, again this post is making less sense, 

 the purchase price $165k

Closing day I paid $51,290.22

I paid for HVAC $12,000

The expenses on 2023 Mortgage, electric, appliances and everything $23,806

The expenses on 2024 until now for changed all windows, fixed hand rail, step, basement leaked electric panel, mortgage, electric and everything $20,777.38

the mortgage balance right now in my account is $119,000

someone offered me $120k as is.

I got all paper and proved of everything. The buyer still contract me today asking me if I still want to sell it this price.

What's the point of lying?

This is nightmare for me. It's a hard time for me. I posted because I need an advice from experience person to get away with this nightmare. Instead of give me an advice but you said like I'm a liar. I wish this is not real story too. If you can not give me an advice better don't say anything to make me feel even worse. Thank you

 I think it's a little over the top to accuse the OP of lying. You can tell by her cadence that she is an ESOL investor and I suspect she genuinely got taken by the "invest out of state" mentality. That happens to a lot of new investors. At least she is sucking it up and trying to make lemonade here. 

Right now she is OOP about $100k. If she can sell for $120k that more or less wipes out her mortgage so she ends up losing $100k. You can recover from losing $100k (I speak from experience) but how long depends on your current means. 

Original poster: if you don't want to keep it as a rental property, it doesn't make sense to put the $30k in it. You might just as well sell it for the $120k and walk. If you plan on keeping it as a rental - and you might want to talk to some experienced Clevelanders first - then you'll have to eat the $30k as well to make it work. That's really the crux of it, as far as I can see.

@James Wise

 Something does not add up with this for the reasons I mentioned. 

 She's not going to lose $220k. She's going to lose everything she spent on rehab and her down payment. That's about $100k. She owes $119k on it, so if she sells it to whomever has offered to buy it for $120k the mortgage will be wiped clean but so will all of her equity. As I said her cadence makes it a little difficult to follow but I get it. 

 Yes she is detailed but again, something does not add up. Why does she have " violations" from the city. Why would the city even be involved. Why would a realtor put their rep on the line and sell this for 90k to much? Why would it need all new wiring ? Why would she pay 12k for two furnaces and HW tanks, when the cost is about 6k- 7k, ? I haver offered to help and walk it for her to get her facts but yet crickets. You would think one would want someone to have a look . 

That is honestly really generous of you to have someone take a look.  Most people would not offer something like that.

I'm STILL sticking to my guns; this post does not add up.  Why not mention the realtors name that 100% ripped her off, ( if she indeed did close) . I am not aware of the laws, but doesn't a realtor HAVE to tell the buyer it needs all kinds of reno? 

[Varun Hegde]

According to public records, the property was boarded up in '21 before sale in '23 for $160k.

After the transfer, looks like somebody from the city came by and noticed the property was falling apart. This seems fishy bc I doubt the city inspectors have time to just hang out around random houses and post violations. It is a real violation though as far as I can tell:

"OWNER HAS 48 HOURS TO SECURE PROPERTY, 60 DAYS TO CORR EXTERIOR VIOLATIONS AND 180 DAYS TO CORR ENTIRE NOTICE W/APP'D MATL'S PER CITY CODE. REMOVE ALL DEBRIS C OF O REQ'D, SEPARATE PERMITS REQ'D FOR M/E/P. FAILURE TO ADHERE TO THIS REHABILITATION PLAN COULD RESULT IN PROSECUTION OR DEMOLITION."

clearly the OP was sold a dud. whether her realtor knew or not is questionable. If I had looked up the public record before purchasing, somebody would need to pay me to take the house on without a walkthrough or inspection.

As far as I can tell there's no publicly recorded mortgage... that's the most fishy part of this. @Summer Dechanukul are you sure that your mortgage is recorded? You need to consult with a lawyer, especially if you didn't sign anything acknowledging the property's lack of habitability and the seller's disclosure didn't mention it.

[James Wise]

Quote from @Varun Hegde:

According to public records, the property was boarded up in '21 before sale in '23 for $160k.

After the transfer, looks like somebody from the city came by and noticed the property was falling apart. This seems fishy bc I doubt the city inspectors have time to just hang out around random houses and post violations. It is a real violation though as far as I can tell:

"OWNER HAS 48 HOURS TO SECURE PROPERTY, 60 DAYS TO CORR EXTERIOR VIOLATIONS AND 180 DAYS TO CORR ENTIRE NOTICE W/APP'D MATL'S PER CITY CODE. REMOVE ALL DEBRIS C OF O REQ'D, SEPARATE PERMITS REQ'D FOR M/E/P. FAILURE TO ADHERE TO THIS REHABILITATION PLAN COULD RESULT IN PROSECUTION OR DEMOLITION."

clearly the OP was sold a dud. whether her realtor knew or not is questionable. If I had looked up the public record before purchasing, somebody would need to pay me to take the house on without a walkthrough or inspection.

As far as I can tell there's no publicly recorded mortgage... that's the most fishy part of this. @Summer Dechanukul are you sure that your mortgage is recorded? You need to consult with a lawyer, especially if you didn't sign anything acknowledging the property's lack of habitability and the seller's disclosure didn't mention it.

 What's the address of this wanker of a property?

[James Wise]

Quote from @James Wise:

Quote from @Varun Hegde:

According to public records, the property was boarded up in '21 before sale in '23 for $160k.

After the transfer, looks like somebody from the city came by and noticed the property was falling apart. This seems fishy bc I doubt the city inspectors have time to just hang out around random houses and post violations. It is a real violation though as far as I can tell:

"OWNER HAS 48 HOURS TO SECURE PROPERTY, 60 DAYS TO CORR EXTERIOR VIOLATIONS AND 180 DAYS TO CORR ENTIRE NOTICE W/APP'D MATL'S PER CITY CODE. REMOVE ALL DEBRIS C OF O REQ'D, SEPARATE PERMITS REQ'D FOR M/E/P. FAILURE TO ADHERE TO THIS REHABILITATION PLAN COULD RESULT IN PROSECUTION OR DEMOLITION."

clearly the OP was sold a dud. whether her realtor knew or not is questionable. If I had looked up the public record before purchasing, somebody would need to pay me to take the house on without a walkthrough or inspection.

As far as I can tell there's no publicly recorded mortgage... that's the most fishy part of this. @Summer Dechanukul are you sure that your mortgage is recorded? You need to consult with a lawyer, especially if you didn't sign anything acknowledging the property's lack of habitability and the seller's disclosure didn't mention it.

 What's the address of this wanker of a property?

 Nvm I found it. You already have it listed with an Agent for $140k and you are advertising it as fully renovated? This whole thread doesn't make any sense.

On a side note, doesn't look like it needs all that work you said it does. However you definitely overpaid, by a lot, probably overpaid by about $75,000. What you have here is your standard Section 8 duplex in one of Cleveland's many ghetto neighborhoods. 

I recommend you slap 2 Section 8 tenants in there, or drop your list price till it sells As-Is.

[Drew Rees]

I'd like to say...

1- in your particular case get another opinion! Just like with medical issues got cancer, got a weird bump? get a second opinion! As others have mentioned you need to know what didn't pass and why.

2 - never ever buy a house without an inspection. In fact get several. Inspectors are not experts they are generalists. Get a HVAC guy to inspect hvac, plumber to inspect plumbing, roofer to inspect roofing etc.

AND IF YOURE A GUY - GET YOUR WIFE"S OPINION! and vice versa of course.
Women are amazingly intuitive if they say "eh... I don't like it" see if they can put their finger on it as to why.

If they can't ohhh boy... You might wanna walk... (Run!)

3 - as time goes on you will learn who's good, who's bad, who to trust etc. A PM with lots of experience will save you money! They have a network of people they use, who they know do good work, exploit the heck out of that!

[Vadim F.]

If what I am seeing is correct, this property was condemned by the city of Cleveland. How were you able to get a mortgage on it and how did it get past title?  Since it was condemned by the city, maybe the rehab work was done without permits and the city inspector would need to come out to reinspect. 

Either way sorry to the OP who got taken advantage of. I would get a 2nd opinion on the property, and make it a S8 rental. From the pictures, I am not seeing much work that is needed to get rent ready. Also, on the bright side that area is booming, so there might be some long term appreciation. https://neo-trans.blog/2024/04/24/clevelands-central-fairfax...

[Melanie Thomas]

If I was given the two choices, I would continue on and work to recoup sunk costs; however, my motivations are my own. Above all, this is a hard lesson to learn, and I am sorry you are going through this. Really look at your long-term goals and how you could turn this around. Good luck & happy investing!