Code violations
I viewed a house that I saw posted on Craigslist. The house needed new everything. On my way to my car, I noticed a letter on the door. The letter was from the Fayetteville Code Enforcement. The letter was the reason why the seller was so motivated. That's when I decided that since I was not getting good results with empty houses I should market to owners that NEED to sell.
I went to the Court House and no one knew what I was talking about when I asked for code violations. It's a good thing I took a picture of the letter because it had the address and department listed, City Hall. Went to City Hall, they couldnt't give me a list because they were training new people and said to come back in 2 weeks. Went home, called them, and asked if there was a list online. No list online. Then asked if I could get one. Needless to say, I got the runaround.
Later that night I sent an email stating that code violations were public record and that I would like a list. When I woke up the next morning, a got a list from 2 people.
Fast forward.... 59 letters, 7 calls. How can people ask for FMV when the house is condemned? Went to look at 2 houses. The first owner did not have the keys. The second house needed everything. The guy started at 20k and talked himself down to 15k then to 10K. I did not have to say a thing. All I did was question him about the various repairs. I think I can get him to finance this one with maybe a small downpayment. The biggest issue is the oil furnace. It will cost 6K-8k to update to heat pump. Cannot use gas; piping is not there. Any suggestions? It will be a rental.
Comments (7)
I see. I would still get a lot more bids. You're looking, based on some limited info here, at paying your hvac guy around $4,000 for or so 2 days of work and around 2k or less in materials if you pay him 6k for the job. Ebay is a great place to get a rough idea of what hvac equipment costs. The costs should be less to your technician when they buy from a supplier. There's a lot of guys on craigslist looking for work that have low overhead. You could even tell them you have a connection on discounted hvac equipment and that you just want a bid for the labor to do the job and hook up the units. The people that respond unfavorably to this request aren't the people you want to work with as an investor.
Ed O., over 12 years ago
Ed O. I always thought oil furnaces were something Notherners used. The 6-8K included the unit, electrical, and new ducts because he said the new unit would burn up in one year with the old ducts. There is no gas line. I called the only gas company in my city.
Shanequa J., over 12 years ago
Shanequa: I'm not terribly familiar with oil furnaces, but if it's a forced air system, you could always convert it to an electric furnace. This change may require the upgrade on your electric service to a 200 amp main & some wiring. On the hvac side, I recently paid $2500 for a complete, new system, 90% furnace and 410a air conditioner. If someone is wanting 6-8k to replace a heat pump on a single family unit, I would never call them again. Also, depending on the situation, if there's a natural gas line in the neighborhood, but not running to the house, it may make sense to see if a line can be run and for what cost. You never know sometimes.
Ed O., over 12 years ago
LaRhonda M I sent an email to the person that processes public information requests. Use an email address that you can put on resumes. No [email protected] type addresses. I really didn't think it would work; needless to say I was surprised when 2 people sent me lists. The list contained the repairs needed, address, and codes. I cross-referenced the address with the county's tax assessor database to find the owner's name and mailing address. I don't know for sure if it's public information everywhere, but go to your city hall website or building and ask. You will hear many no's and see many confused looks. This is the email I sent: "Hello, I would like to obtain a list of residental code violations for 2012 excluding overgrown grass or minor violations that are usually corrected quickly. The list should consist of illegal conversions, abandoned properties, mold infestation, dilapidated structures, etc. Thank you very much. I can be reached at 210-643-2369 or by replying back."
Shanequa J., over 12 years ago
So you sent an email to the city Hall for properties that were in code violation and the sent you a list? Is this public information anywhere?
LaRhonda M, over 12 years ago
Joshua Dorkin Thank you. I was real close to giving up after hearing no many times.
Shanequa J., over 12 years ago
Shanequa -Thanks for sharing your experience. I love the tenacity and look forward to hearing about you closing on one of these deals. As for the furnace, that's out of my wheelhouse. I'm sure someone will jump in to share their insight; if not, be certain to post that question on the forums. Good luck!
Joshua Dorkin, over 12 years ago