All Forum Posts by: Elizabeth Njuguna

 they were not aware of the issue at appraisal, the inspection and appraisal were done a day apart

@Jon Kelly so to clarify if it’s raised $91000 , is it a credit back ? Meaning the difference is money they’d give back in cash or that basically goes into the increased mortgage payments (ultimately being more money I’m financing and having the rent covered) that’s what I’m understanding From what @Theresa Harris . Or is Crediting back essentially be reducing the price since that’s money coming out of their end direct ?

@Jay Hinrichs so they’re one of the better known providers in KCMO so I was definitely expecting more. They didn’t have a cleanout for the home inspector to access so the seller installed one , so clearly it’s a scope they didn’t look for. I thought their willingness to install the cleanout was a good indicator they weren’t trying to be shady but at this time seeing the condition I’m concerned what else may be missing despite the capex items being on the newer end. They also aren’t budging on paying for it or at least crediting. And now seeing what @Jon Kelly mentioned on pricing it does seem like a much bigger liability on my end to take that on after closing .

Hello!

I recently had some inspections done on a turnkey property and got some less than stellar findings back . The biggest item being a Sewerline needing to be replaced . Purchase price for home is $88000, it appraised for $91,000 . Quote for replacement of Sewerline is $5000. Seller is saying they are unable to repair before closing , they suggested increasing purchase price up to $91,000 to finance portion of the repair then I pay the remainder out of pocket. Cashflow wise it eats up much of the 2 year cashflow. Rent for property currently tenanted is $900. I was originally accounting for just 10% Capex & maintenance given this is "turnkey" with new roof, hvac, electrical, flooring. But now it would be more like 10% capex for 3 years. I didn't want to go into this having to do a major repair from out of state especially , I imagine such a repair would open up another can of worms. The area is looks to be appreciating at about 4-6% annually (but I again I'm primarily investing for cashflow not solely banking on appreciation) it's in a C class area in KCMO . So my question is is this a deal worth walking away from in the grand scheme of things?

I am currently under contract for a property in Kansas City built in 1957, recently rehabbed which I have had undergo a home inspection, inspection by Structural engineer and most recently a plumber inspector as the home inspector was originally unable to access the sewerline from outside of the house and was not licensed to remove the toilet so he suggested having a plumber inspect the sewer line. The plumber went to the property and encountered an issue where he too couldn’t access the stack line and found no outside clean out and said to gain access to vent he would likely have to make cutouts in the wall between the bathroom and the adjacent bedroom. He said for the extent that his camera could go he could see there was a lot of cast iron debri

He suggested that I shouldn’t proceed unless the seller of the property can create access to the stack line (clean out in the bathroom wall) or install a clean out outside for external access rather than having to rip out the toilet each time there’s an issue. At this time because there’s no access I don’t know the full condition of the line. As it starts out as cast iron (then likely clay line outside) I’ve been researching that eventually these will have to get replaced at some point to PVC if cleaning maintenance hasn’t been done or if some other damage to the Line occurs, I wasn’t provided a quote as he again couldn’t get outside access to view. This is making me apprehensive to buy but wanted to know what negotiating points I can make with the seller to resolve this issue before it becomes a bigger one down the line. Any insight would be greatly appreciated !

I am currently under contract for a property in Kansas City built in 1957, recently rehabbed which I have had undergo a home inspection, inspection by Structural engineer and most recently a plumber inspector as the home inspector was originally unable to access the sewerline from outside of the house and was not licensed to remove the toilet so he suggested having a plumber inspect the sewer line. The plumber went to the property and encountered an issue where he too couldn’t access the stack line and found no outside clean out and said to gain access to vent he would likely have to make cutouts in the wall between the bathroom and the adjacent bedroom. He said for the extent that his camera could go he could see there was a lot of cast iron debri

He suggested that I shouldn’t proceed unless the seller of the property can create access to the stack line or install a clean out for external access rather than having to rip out the toilet each time there’s an issue. As it’s cast iron I’ve been researching that eventually these will have to get replaced at some point to PVC, I wasn’t provided a quote as he again couldn’t get outside access to view. This is making me apprehensive to buy but wanted to know what negotiating points I can make with the seller to resolve this issue before it becomes a bigger one down the line. Any insight would be greatly appreciated !

@Casey J Burkhead thanks ! Property is in Kansas City , Missouri

Hello,

Needed recommendations for insurance policies that will cover a rental property with Section 8 tenants. I have one on contract and approaching closing. Most quotes I am looking at seem to say they will not be able insure. I'm unsure of why that is. It seems challenging to find some that actually will. 

Reviewing an inspection report, a few items alert me as to whether these are result of normal settling or potential foundation concern requiring addition of piers in the crawlspace. Report mentions Sagging throughout interior ceiling, cracking around most window and door frames, very uneven floors indicative of a structural movement, further evaluation recommended. Some door latches also do not seem to have been fully closing and some latches were removed by previous tenants. Some epoxy injections were recommended for concrete repair and a roofer to reseal the roof fixtures. The underlayment is visible through large damaged sections of the decking and attic ambering present. It appears some previous epoxy patching to the foundation seeming to have been done. I am wondering if this is all result of normal settlement in older houses (built 1958, Kansas City soil is clay) or a bad repair project waiting to happen, I am an out of state investor and not trying to do any major renovations and will likely exit the deal if it seems to be a foundation issue that will require a couple thousand to resolve in the next 5-10 years or even sooner. Any insight and/or estimates would be appreciated!

Hi all,

Looking for PMs in Kansas City that work with Section 8 applicants. Property I am looking at is in the Stratford Estates. Anyone worked with Home River Group?