All Forum Posts by: Sarah Becker

Its such a small world Jay Hinrichs.  You and I keep running into each via Bigger pockets.  We seem to travel on such similar investment paths:) I always enjoy reading you comments and input. If you come through the area again let me know so I can buy you lunch! What subdivision on Hammonton Smartville?  ( Gold Village or other?)

Also inline with this thread. I know that the David Oldenburg probably already knows Zoning ect. but I mention some basics for other readers.  I am shocked frequently by clients who move forward with lot splits with the inaccurate assumptions that 1) the project completion is feasible 2) that the split lots ( two lots in this case) are worth more than what the single lot was worth.

Make an appointment with a planner from the county planing department to discuss viability of the project. Depending on what planning has to say you may also need to meet with public works regarding road improvements or encroachment permits. If sewer and water services are not available you will also need to meet with environmental health regarding testing needed to allow for lot split. After you have met with planing to determined if a lot split is probable they can give you a basic fee estimate of county fees. Now to the expensive part. Find and hire an engineer to complete the mapping process. If you hire a bad one they will milk you dry ( usually claiming it's all the counties fault) if you hire s good one they will give you realistic expectations. The good engineers are usually not cheap and are very busy. Here's a few questions you should know to get started. What is the minimum lot size allowed for the current zoning? Are city sewer and water available? Does the lot have access and would both proposed lots have paved road access? As an investor it's important to know beforehand if the end result of having two lots instead of one is worth the cost and substantial work required to complete the split. It is an expensive and cumbersome undertaking. The fees are all front loaded meaning you pay fees to the county and the engineers without a guarantee that you can complete the split. In some cases it does not make financial sense. So do your due diligence carefully. I hope this helps :)

Jay is correct. Call your state licensing hotline. If you are acting as an investor (even as a principle owner/shareholder through an entity) you have to disclose your professional standing as a licensee. But again the hotline can answer that specifically for your state. Many agents don't want to disclose this when acting as an investor... To that I say "turn in your license or disclose" you can't have your cake and eat it to. I error on the side of caution when it comes to disclosure on this one. ????

We found a septic tank with car parts and a tire in it.   Another common one is deceased household pets. apparently people flush more than just gold fish. eww.

one of my septic inspectors even found a human skull. Thank god that wasn't my property. freaky!

Much of the information that I would provide about maintenance and inspections is listed above by other awesome members here on Bigger pockets. Septic's are common in my area and I have overseen 20+ full system replacements, hundreds of repairs and thousands of inspections over the last decade. a system replacement in my area usually runs between 20k-40K. and a property will be red tagged quickly if you do not have an operational sewage system so don't take this lightly. MAKE SURE THAT YOU HAVE THE SEPTIC TANK AND LEACH FIELDS INSPECTED AND CERTIFIED IN GOOD WORKING ORDER BEFORE YOU PURCHASE.

Here is a few suggestions that I didn't see mentioned above.

1) Home warranty insurance companies have "ad on coverage" for septic systems. this will not cover everything but it might be worth looking into or asking the seller to provide a one year policy to help ease your fears.

2) Check with the local utilities and  government office to determine if city sewer is available to connect. Many times utilities have been added and are available to hook up for substantially less than replacing a septic system in the case of a failure down the road.

3) Remove garbage disposals. if the property has garbage disposals your tenants will use them which add additional solid waste to your system.

4) Get a copy of the "site plan" for the septic as it was installed. this should be available at the local government office Here in CA it is the "environmental health dept". Be sure that your septic was permitted for the number of units and bedrooms that actually exist. Pay careful attention to the location of the septic system and leach fields in conjunction to the structure and the well (if applicable). If the property has a well make sure that the well is more than 100ft from septic and an all leach fields. You will not be able to obtain standard or FHA financing if well and septic are to close together. If the property has a well you should have it inspected also and make sure that a water sample is sent to the lab to determine that there is no e-coli in the water. (nasty but its much more common than you think). This could indicate that the sewage is leaching into the groundwater.

 I hope this helps :)

Sarah Becker

Thanks Jay,

I have bought 15 properties at Tax foreclosure sales and I've done pretty well with my buys. I have shied away from properties with large HOA liens or back dues because I was unsure of what legal leverage the HOA may have on the title of the property. I have passed on a few promising properties because without this information I couldn't make an informed decision. Also most HOAs have refused to provide me with the total amount of their back dues Since (prior to the auction) I was not the owner of the property. Do you or anyone have any attorney referral for Quiet title actions and HOA issues?

I have been searching for a definitive answer regarding the clearing of past due HOA liens and fees for tax deed/sale properties in California and Washington state.

My question is: Are the HOA dues and leins cleared like a mortgages in a tax deed scenario?

Has anyone bought a tax deed property in an HOA that had back dues or liens? Any insights or specific experiences are greatly appreciated.