All Forum Posts by: Chad Mitchell

Thank you for the info! I'm past my allotted time for inspections, so won't be able to get a firm estimate. I made a rookie mistake and did not factor this in to the negotiation, so will probably walk away. This could potentially cause my rehab budget to explode. 

I'm calculating rehab costs for a rental property, and the inspection revealed water intrusion around the foundation in the basement.

For an image, see: https://imgur.com/a/iXA6kBu

I've heard to walk away from deals involving foundation issues, so I wanted to check with others who have dealt with similar issues. How much does this cost in a typical case vs a worst case scenario?

Hi,

I'm under contract for a fourplex, and currently in post inspection negotiation.

My real estate agent asked me to sign a repairs amendment to the offer that includes a termite letter for the entire property (disclosure from previous offer inspection), as well as FHA required fixes.

My question is: should I include additional repairs on this list, or is it possible to negotiate those big ticket items after the current repairs are done?

For example, the items I would like to negotiate are: new roof and electric panels and wiring. Should these be included in the repairs amendment if not required for the FHA loan? My goal is to either have the seller pay for the repairs or lower the agreed upon price.

Thank you

Hi,

I have a 4 plex under contract and just finished the inspection, which showed a number of things that need to be fixed per FHA requirements (e.g. electrical wiring, new roof, peeling paint, etc.). Current asking price is 192K. One of the units is vacant, which I plan on moving in to. The others bring in 1600 per month (2245 if all rented). After rehab, the total income will be about 2850 - 3000.

The house is old (1899), and definitely needs a lot of work. What are potential game plans for next steps?

My thinking is: (1) Make a counter and ask the owner to make all the needed repairs (rough estimate = 20K - 25K). Or, (2) Current asking price minus cost of repairs, and we'll use a 203K to cover the cost of the repairs.

Is there an alternative? Is this possible? What would you do in this situation?

Thank you! That's what my current game plan is. 

Hi,

First-time homebuyer -  I just had my first offer accepted for a fourplex. The home inspection is next week, but my agent sent me notes from a previous report showing that there were "termite shelter tubes in the joists." The seller was asked to treat for termites (~$800 - $900).

During our showing, I noticed that the floor was weak in some spots in one room, but not in the others. In general, are termites a deal breaker? Is there a process that I can take to evaluate if I should move forward with the purchase?

Thank you for the replies! Great info.

Hi,

I am trying to close on a small multifamily (fourplex) using an FHA. The roof needs to be replaced. Is it possible to secure an FHA if the roof needs to be replaced, or will I have to use a conventional loan?

@John Warren Thank you for the advice. I am looking into if the additional lots are buildable and waiting to hear back. 

Hi,

I found a good deal in a growing and gentrifying neighborhood that comes with an additional two lots. The extra lots are empty, but have been cleared. So, I would need to pay some additional taxes and take care of lawn care. In general, are extra lots worth the additional costs?