Hillside duplex

[Hyuma Leland]

Hi BP,

I am in escrow on a hillside duplex in a popular area of Los Angeles, numbers wise, the place is about break even with my long term buy and hold strategy, but will allow me to build equity, credit, and take some tax breaks. 

Does anyone have any experience with hillside properties? what additional foundation, drainage, retaining wall issues should I be aware of? Do you typically budget additional expenses? Any rough estimates on build costs for hillside drainage to prevent land erosion (1000's, tens of 10,000s?)

Thanks!

[Hyuma Leland]

Hi @Josh Prince , the foundation inspector gave some great insight into the structural integrity of the property today. The major finding was that the foundation was inadequate, shoddy, and unsafe. Major sections of the foundation were covered from view, extensive drainage issues were present. He estimated $50-100k in repairs. Needless to say, I am cancelling the deal.

Some learning points:

1. Be careful of hillside properties! If anything looks fishy related to foundation or drainage, Run...don't walk!

2. Inspections are a must, especially for new buyers. We did spend $800 on inspections, but we saved up to $100k in repairs. 

3. Contingencies are important even in competitive markets when a property is marketed in "move-in" condition. 

4. Perseverance. This deal may be dead but on to the next one!

Thanks again everyone for the help!