All Forum Posts by: Jacqueline Brown

Good points @Jon Holdman. I'll be buying and holding. The price is right and the area is great. I want to know the numbers from a licensed electrician simply so that I know what should be done and whether it should be done now or later. I also want to use the information for negotiation purposes should the problems merit such. 

Thanks @Hattie Dizmond and @Troy Sheets. Good advice. I guess I'm looking for that "no duh" factor as to how badly the house needs rewiring. I supposed items 1 - 9 are sufficient in saying so. My lack of electrician skills brings out the skeptic in me, however, and leaves me wanting the advice of BPers. Not to mention, my lack of not being there on site has me a little jittery. Thanks guys.

I haven't watched the video yet, but I do agree with the direction things are going with realtors. I, for one, am wasting my time with one on a property that I'm currently under contract. Both my agent and the selling agent are simply forwarding my emails and the sellers' emails back and forth...even so far as forwarding the emails so that I can read extensive chains of information that the seller and their agent have discussed. And vice versa. The seller and I may as well be conversing entirely with each other. So far, between the two of them, they've brought zero value to the table. If anything, they've made things a little more tense with negotiations simply because the seller and I know, verbatim, what the other is saying about the property. I mentioned that I wanted to have the electrical further looked at because the inspection came back unsatisfactory. The selling agent tells the seller to "not panic, and that we'll get through this, etc. etc...", but I see that as them showing me that the seller is now nervous. Tacky mistake if you ask me. I simply decided to use one because I'm still new to the game, but I am noticing a trend toward them becoming less of an asset and more of a $ waste. 

I'm under contract on a home in a small town where I grew up. All things have checked out on the home inspection except for the wiring. It's a 1948 home (no worries, I'm aware of the headaches that may come), but I've requested an electrician to take a deeper look. I live about three hours away so jumping up to meet the electrician isn't really an option. However, I've learned that the sellers want meet the electrician at the property later this week. Would you be concerned as a buyer? I'm somewhat wary of small town cronyism and I don't want the issues to be softened or made light of if the house, in fact, truly needs to be fully rewired. The electrician is licensed and not some random handy man, but the sellers' agent is the one who suggested him. 

Here are the items from the inspection for what it's worth:

1. Significant amounts of contaminants or foreign material such as drywall texture or paint were found in panel(s) #A. No approved method exists for cleaning contaminants from panel interiors or components such as bus or terminal bars, circuit breakers or fuses. The panel and/or components inside may need replacing. Recommend that a qualified electrician evaluate and replace components if necessary.

2. Sub-panel(s) used older style, "Edison" base fuses. This type of fuse allows anyone to install incorrectly rated fuses, possibly resulting in damage to wiring. Recommend that a qualified electrician evaluate this panel and the wiring to determine if damage has occurred, and repair or replace components and/or wiring as necessary.

3. One or more electric receptacles (outlets) at the kitchen, bathroom(s), exterior had no visible ground fault circuit interrupter (GFCI) protection, or the inspector was unable to determine if GFCI protection was present. If not GFCI-protected, receptacles in wet areas pose a shock hazard. Recommend that a qualified electrician evaluate and install GFCI protection if necessary and per standard building practices.

4. The electric service was configured so that too many hand movements were necessary to turn off all power for the service. Six or fewer circuit breakers should be required to turn off all power to a residence. This is a potential safety hazard during an emergency when the power needs to be turned off quickly. Recommend that a qualified electrician repair per standard building practices.

5. Wire splices were exposed and were not contained in a covered junction box. This is a potential shock or fire hazard. Recommend that a qualified electrician repair per standard building practices.

6. One or more modern, 3-slot electric receptacles (outlets) were found with an open ground.

7. One or more knockouts were missing from panel(s) #A. Holes in panels are a potential fire hazard if a malfunction ever occurs inside the panel. Rodents can also enter panels through holes. Recommend that a qualified person install knockout covers where missing and per standard building practices.

8. One or more cover plates for switches, receptacles (outlets) or junction boxes were missing or broken. These plates are intended to contain fire and prevent electric shock from occurring due to exposed wires. Recommend that a qualified person install cover plates where necessary.

9. 2-slot receptacles (outlets) rather than 3-slot, grounded receptacles were installed in one or more areas. These do not have an equipment ground and are considered unsafe by today's standards. Appliances that require a ground should not be used with 2-slot receptacles

**The home is part of an estate sale and the children just want to get rid of it...the price and the area are the main reasons I'm seeking it.

Am I just overthinking the sellers' wanting to be there as odd? I don't want to seem defensive to the sellers, but I suppose I am since I am not local to the property. 

I've had luck with BB&T but my debt to income isn't bad. They've been really friendly and make it a personable experience. I'd give them a try at least. They also do small mortgages (under $50k).

@Colleen F., I've just put in an offer so there isn't much in the way of paperwork just yet. I was mainly concerned with what can constitute a second home since I am renting it to my mother but I will be staying there when I visit her. She'll be paying me below market rent, but I was concerned with how things may get convoluted come tax time. Thanks for the responses!

@Dawn Anastasi, I'll be renting it for below market as long as she lives there. 

I know there's reason for hesitancy when renting to family, but hear me out. There are some decent priced properties that allow me to make the numbers work back in my hometown. I am looking to purchase a property and allow my mother to rent it from me, yet it will also be a second home for when I visit (which is fairly frequently). I have two questions: From a loan standpoint, what is the better option? An investment property or second home?

My next question is from a tax standpoint....which one is more beneficial for tax purposes or is there a "right" way when it comes to this situation? Are there differences in insurance prices as well? Any insight would be appreciated. The best option that makes my money work for me is the ideal option of course, but I want to make sure my choices are legal and lessen my chances of being audited. Thanks!

Thanks for posting your forms @Michael Quarles  Very tidy and I'll be using these as a guide. =)

Thanks for the advice @Jack B. Fortunately, my mom is someone I'd trust and she'd tend to the property. She'll make improvements along the way if anything. I can't argue there, but I understand the hesitancy with renting to family members. I should probably read up more on owner-financing and check in to that route. 

I do have my own home and will check into a HELOC as well. Would you know what the average time frame is to process one? Also, and this may be a dumb question...but can I go through a bank for a HELOC or does it have to be with the company that my mortgage is through? Thanks for the help!