All Forum Posts by: Ada Li

Hi all - thank you for your replies and your advice! 

I asked for the max Seller's Assist amount (the inspection report came back with estimates well over the Seller's Assist amount). I knew this going in since this is a property that does need some TLC, but I didn't anticipate the gas lines having an issue. In addition, I asked for the Seller to fix the gas leak based on the advice above. I'll have a certified plumber verify that the gas leak was fixed properly afterward. If the Seller doesn't agree to fix the gas leak, I will try to negotiate down the price and will find a trusted contractor to complete the repair.

@Theresa Harris - Yeah the gas has been shut off

Based on what @Bruce Woodruff & @Joehn B. is saying, seems like gas lines may not be as big of an issue as I thought it could be. I was also quoted at $4,000 max from a family friend (this might be lower than what others would charge) to replace all gas lines which isn't that much in the grand scheme of things. The property was built in 1923 and has had some upgrades to it in 2015, but not sure if gas lines were upgraded. The 1st fl stove needs to be replaced anyway (it is SUPER old) so not too worried about it.

Thank you all for your advice! This has been super helpful as a first time home buyer! 

Hi Biggerpockets community! Happy Holidays!

I am a first time home buyer and am currently conducting inspections for the property but found that the property has a gas leak. 

Question: Should I be worried that there is a major issue with the gas leak? What other checks would you conduct as a buyer?

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Right now (according to the seller), the gas lines to the range / stove  for 1st fl and 2nd fl are turned off because

1. 1st fl stove/range needs to be replaced
2. 2nd fl - There's a leak on fuel line somewhere between isolator valve in basement and 2nd range

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Why do I think there might be a major issue 

1. Reason 1 - Seller said tenants moved out in November b/c there was a gas leak. Instead of fixing this, it seems like they decided to sell the place in December. The reason seller gave my agent for selling the place is because they're moving.

2. Reason 2 - It seems like they had the property serviced, but didn’t fix the gas leak issue.

Background for reason 2—Gas company went to property on 12/21 and left 1 note saying ‘range leaking gas’ and another note saying ‘heater needs service’ (guessing 1 note for 1st FL and 1 note for 2nd FL). Seller told me to reschedule the 2nd part of the inspection from 12/22 to 12/23 so he could use 12/22 to service the place. On 12/23, it looks like the slab of tar outside of the home is fresh which means someone was working on something (this slab leads to the basement and is likely related to the gas lines). We had part 1 of the inspection on 12/12 and this slab of tar looked somewhat new during that time as well (which leads me to believe someone worked on something below this slab of tar twice within a short time frame).

As a seller, I wouldn’t even bother to fix the leak in the gas line, so why is there fresh tar? The only reason I can think of is if someone opened that area, saw that the issue was a bigger issue and then decided to let the buyer deal with it. The only other reason I can think of why there’s fresh tar is if they needed to go down that spot to fix the heater, but that doesn’t make sense as to why you would need to go underground to fix the heater.

Any advice on what you would do?

Hi BP! Wondering if anyone has lender recommendations for a duplex in Philadelphia? Any specific reason why you recommend that lender?

This is my first property and I will be house hacking it. Thank you!

Thank you for the response Dave! 

Primary residence / Investment Property -- I plan to house hack (2-4 unit property and live in 1 unit). 

1. Super helpful! 

2. I also looked into the Conventional 97% LTV program -- looks like it's limited to single family homes.

Hi there! 

1. What counts as income? Are bonuses included?
Home Ready and Home Possible have Avg Median Income limits (Philadelphia $84K)- I meet this requirement if I don't include bonuses (from referrals and performance so non-recurring) but won't if bonuses are counted.

2. Would it be less expensive for me to get an FHA loan or a Home Ready / Home Possible loan? Are there any calculators available? 
My understanding is what could potentially make the difference is the interest rate which is dependent on my credit score (which is 740+).

Any additional advice would be greatly appreciated (first time investor). Thank you in advance!