All Forum Posts by: Account Closed

thanks @Kelly Iannone  

Sorry for the double post, but I couldn't edit my last one.

Would you purchase a multi family that had a lead water main if you didn't have the budget to replace it? The estimate to replace the one in my situation is around 15k. Can't decide if this is a deal breaker for me.

Good points everyone. I plan on getting the water tested tomorrow, but regardless I have a bad feeling about the lead. I’ve seen filters that claim to filter out 99% of lead but I feel like that solution is temporary. 

Regarding his renovation, I initially thought it was great since he installed all new HVAC systems as well as cosmetic, but the fact that he left a failing roof and lead pipe makes me wonder. 

Originally posted by @Nik Moushon:

The lead pipe is a MUST replace item. Now that it is known the seller has to disclose it from here on out. If your inspector caught it the odds that other would miss it is slim. Use this point as leverage on the seller. What this brings up is what other pipes are still lead? If it was completely renovated this should've been picked up, at least common sense says so. Either a huge price cut, because of the other unknowns this brings into question, or a credit back to you at closing. DO NOT have them fix it. This is too big of an issue to "trust" that they will do it and do it right. This is no different than asbestos. Once you know about it you have to deal with it.  

As for the roof its a big deal but not as big as the pipe. The bigger thing to check here is if its failed in any locations and causing leaks and deterioration of the structure underneath. If its just that its old and could fail then its an easier fix. Still bring it up and ask for compensation.

 Thanks for the feedback Nik. Roof already has leaked and contractor saw the spot in which it most likely occurred from the roof. 

The only pipe that was noted by inspector as lead was the main supply running from the street. All of the other exposed pipes in the basement were copper or other materials.  It's my understanding that supply lines, especially in this area, are commonly still original lead. Would that still be a good leverage point even if it is known and common in the local market?

Originally posted by @Robert Huang:

no deal.

1. i would worrying every single day about drinking water from the house.

2. if you end up spending money to replace the lead pipe, how long will it take for rental profit to cover that?

3. if something happens to your tenants kid, despite lead disclosure, landlords may be held liable.

#1 is enough for me to stay away.

#2 depends on your numbers

#3 you will have to consult an attorney

You're voicing my reservations exactly.

#2 would be about a year at least

Originally posted by @Robert Huang:

i would say no for lead pipes, especially if you plan to have kids or if your tenants may have kids. deal or no deal. but that's just me.

 No concern or no deal?

Hi everyone!

I could really use some advice/insight as I am new to real estate investing and am currently dealing with some issues regarding the purchase of my second property.

I'm currently under contract with a 3 family property in Jersey City Heights. This deal is a rare find and appears to be a great opportunity. The property contains one duplex and one (carriage house) in the backyard, which is essentially single family house the size of the duplex itself. Both were listed for the price of other duplexes / triplexes in the area. I couldn't believe it when I saw it. Both houses were completely renovated in the last 4 years (interior, siding, appliances, HVAC). The units are fully occupied, paying below market rent. With today's income and expenses, the house does cash flow but not great. The plan is to increase rents to market value after purchase, which would give me a decent return. Additionally, the Heights is already changing over rapidly and expected to be the next up and coming part of JC to appreciate strongly. All of these factors together make this deal seem great.

However, the houses are very old. Particularly the duplex which was built in 1870. Because of the recent renovations, I didn't really know what to expect from the inspection. The property is being sold "as-is" although I'm getting to the point where I may need to negotiate further. There are a lot of minor issues that aren't as urgent, but the main problem is the flat roof on the duplex most likely needs replacement. Still waiting on the report from the roofing contractor, but it seems like its going to be a $15-20k expense that must be taken care of. I plan on negotiating with the seller to see what happens. The other main issue is the main water supply line is a lead pipe to the front house, and most likely to the back house as well. The inspector did not note that is an item for concern. Although I'm aware this is common for old houses, this really concerns me. Especially since I plan on occupying one unit. If I don't feel comfortable living with a lead pipe, I can't imagine tenants would.

I guess my main question is:

1. How concerned should I be with the lead pipe? I plan on getting the water tested for lead this week, but even if it's clear I'll still be concerned about future issues. The replacement of this would be a huge expense for me.

This seems like a great deal that I don't want to pass up on, but I know I need to be smart here and not buy into a potential can of worms.

Thank you!

Hi everyone, I’m wondering if someone can shed some light on whether air from one unit in a duplex gets circulated through the other unit or not. This 2 family house has central air and gas heating. There is an outdoor condenser unit for each apartment and one single furnace in the basement. The reason I’m asking is because one tenant has a cat. I’m wondering if the dander would transfer into the other unit via ducts and cause potential allergy problems for that tenant. Thanks

Originally posted by @Matt K.:

Why not make the current landlord do all this ? At the very least have current landlord give the proper notice as required for increase and for the vacant unit non renewal.

Get the clock started now vs when you close...

 The reason my offer was accepted over another was actually because I didn't require this