All Forum Posts by: Brandon Malone

@Kevin Sobilo - You've said. As stated before this is a learning opportunity, but I too agree with you. Best to return the funds and avoid the potential future drama/issues that will accompany this prospective tenant. 

@Will Fraser - Thanks for the input. I think that's a good way to phrase this in the contract. 

@Kyle J. - Thanks for the input. Yes you are correct in the terminology of using deposit vs fee. I need to revisit her agreement to determine if she used fee vs deposit. She certainly I think will return the deposit just to avoid the complication, but we both thought this was a good learning opportunity to get some general input from others (realizing it's not legal input). 

Hello Biggerpockets. I'm actually writing this post for a friend. She has a basement rental and drew up an agreement for the rental. She has a holding deposit and contract states that if property is taken off the market and renter decides to backout, they forfeit the rental deposit. The prospective renter signed the agreement and the property was taken off the market. However, several days later she emailed around midnight saying she can no longer move forward with the rental. By 10am, she emailed back again stating that she wants to move forward. My friend spoke to her and she stated that her boyfriend forced her to send the email sent at midnight. My friend decided not to rent to her based on the original email sent at midnight and kept the $500 holding deposit. She received an email from a law office requesting immediate return of $500. Does anyone have any insight on whether she has any rights here. I think this is a situation of learning, she's definitely not objecting to return the $500 but in principal wants to know who is in the right.

@Max T. Air pressure test is one of the items I've scheduled to be done. Although one plumber I called flat out said it's really not effective- since it cannot tell you where the leak is. I still requested it because at the very least I know one additional item I didn't know prior. 

@James Dishongh - I've budgeted about 6k for plumbing repairs. My only hope is that I don't end up with a sewer or main water line issue that blows that budget completely. I will try calling the water company because when I initially turned on the water from inside (even though the main line was off) the remaining water in the pipes starting leaking from the bottom of the water meter. I'd like to call the water company to come out and repair it, and use that opportunity to find out any further information- only challenge is, whether they will agree, considering I am not the owner at this point. 

I need your input for my sanity. I have a property I'm looking to purchase that was built in 1992, a townhouse about 1,950 sqft. It's a foreclosure. Value 600k, Bank has accepted 515k with 15k Seller Assist. 5 properties listed in the community all above 600. Property needs about 40k of work (mostly to update bathrooms, floors, etc). It's in very good condition (very livable) except, and here's where things just get difficult. First, the bank has denied turning the water on for inspection or allowing me to pay for the cost to activate the water. It appears the bank simply winterized the house, but later the water company shut off from the outside due to an outstanding balance of 154. The house has about four areas where the drywall is cut to access pipes and some other areas with peeling paint. Also, outside in the yard one area has very grown green grass, leads me to believe either main water leak or sewer backup. Since I can't do an inspection w/o water active there's a risk.

Second the lender/agent have asked that I repair the drywall for appraisal to go through. My question is, is this normal or should I be running for the hills. I've budgeted for about $5k in piping repairs. I'm off base, especially if it happens that I have to replace all of the copper pipes. Help shine some light on my scenario. What would you do?

I need your input for my sanity. I have a property I'm looking to purchase that was built in 1992, a townhouse about 1,950 sqft. It's a foreclosure. Value 600k, Bank has accepted 515k with 15k Seller Assist. 5 properties listed in the community all above 600. Property needs about 40k of work (mostly to update bathrooms, floors, etc). It's in very good condition (very livable) except, and here's where things just get difficult. First, the bank has denied turning the water on for inspection or allowing me to pay for the cost to activate the water. It appears the bank simply winterized the house, but later the water company shut off from the outside due to an outstanding balance of 154. The house has about four areas where the drywall is cut to access pipes and some other areas with peeling paint. Since I can't do an inspection w/o water active there's a risk.

Second the lender/agent have asked that I repair the drywall for appraisal to go through. My question is, is this normal or should I be running for the hills. I've budgeted for about $5k in piping repairs. I'm off base, especially if it happens that I have to replace all of the copper pipes. Help shine some light on my scenario. What would you do?

Hi Biggerpockets,

I need your input for my sanity. I have a property I'm looking to purchase that was built in 1992, a townhouse about 1,950 sqft. It's a foreclosure. Value 600k, Bank has accepted 515k with 15k Seller Assist. 5 properties listed in the community all above 600. Property needs about 40k of work (mostly to update bathrooms, floors, etc). It's in very good condition (very livable) except, and here's where things just get difficult. First, the bank has denied turning the water on for inspection or allowing me to pay for the cost to activate the water. It appears the bank simply winterized the house, but later the water company shut off from the outside due to an outstanding balance of 154. The house has about four areas where the drywall is cut to access pipes and some other areas with peeling paint. Since I can't do an inspection w/o water active there's a risk. 

Second the lender/agent have asked that I repair the drywall for appraisal to go through. My question is, is this normal or should I be running for the hills. I've budgeted for about $5k in piping repairs. I'm off base, especially if it happens that I have to replace all of the copper pipes. Help shine some light on my scenario. What would you do?