All Forum Posts by: John Collins

 Yes, they generally have a more comprehensive checklist in the written report but I like to make sure to emphasize the main ones. I have seen inspections charged at $300, $500, $675 and it really depends on the individual's thorough approach and attention to detail, not his price. If they go into it knowing that I know what I'm talking about and looking for, they will make sure to spend at least 4 hours there checking up on everything. 

If you want a comprehensive mold test for areas with water damage history (not including remediation), or if there's been an internal leak, it's a little extra or $500 from another licensed mold specialist. But this is a last resort - first I focus on fixing any leak, removing all carpets and drywall in area, clorox and other cleaners... Then when I get the report I make sure nothing has been missed. 

The raw numbers look great. However, a few questions

1. Is any rehab needed with floors, counters, kitchens, bathrooms etc? 

2. Has the property had issues in the past? Anything recurring? Plumbing, foundation, settling, frozen pipes etc?

3. What has been the vacancy rate of the apartments leading up to this? Not always high demand for only 1 bath places in nicer school type places. 

Just extra questions to check up so a post-purchase cost doesn't creep up on you. 

My checklist for SFH:

1. Foundation check and soil conditions 
2. Settling / drainage - Gutter set up, gradient of surrounding land, how water moves during rain and subsequent cracks in/around house
3. Electrical check
4. Plumbing pressure test with water off (I would also throw in camera test that adds $200 on it's own- I got burnt with a sewage line replacement for $7-8k after purchase). 
5. Land boundaries, zoning and permits. There was a grand design episode where the guy spent over a million on his dream house and right at the end , after all the construction was finished, had to call back the crew and dig his driveway or plumbing according to the zoning he wasn't aware of. 
6. Age of roof, ac units, furnace 
7. Natural disaster history and insurance options
8. Windows - single or double pane? 
9. I don't buy older wood houses - too many issues with rot/termites/fire hazard. 
10. Gas line valves - make sure no leaks
11. Sprinkler system check 

Mot all of this, excluding the plumbing, will be on the $500 inspection report with a well rated local filling you in on all the details with pics. 

Very sorry to hear your story Femi, but do not let it defeat you. It will no doubt make you more focused, more hungry and more methodical when dealing with real estate in the future. 

 So you didn't go inside the house before purchasing (you said they didn't let you)? Did you look at the site map? 

Do you have the option of removing the concrete where the driveway and carport are and relaying it within your boundaries? Would your HOA allow it? You can get a lawyer to try and nit pick and salvage something from this, but that is more expense and time with the possibility you get burnt by their more expensive lawyers. I would keep offering solutions to the city and see if you can have an extended face to face with multiple options for you to move forward.

You cannot blame New Western for this -- it is akin to hiring illegal immigrant labor to do skilled work and being unsatisfied with the result. You have to be there with them all the time overseeing and doing some of it yourself. If I put in x amount of work when buying a property normally, I would put in 2x the work when buying it foreclosed , private party or from wholesaler. 

Anyone have a tax deductible template they use for renovations? Depreciated value based on homes built in 80-90s. 

New roof, new flooring, new counters, new ac, general contractor work, concrete removal, sewage line replacement (inherited pipe was backlogged and broken by roots) etc. 

Earth is the perfect system. If you want to live on Mars with Elon Musk in masks and play with red clay all day, you're more than welcome to. Destroying Earth so people can fantasize about having enough resources to teleport to galaxies far, far away, that is the folly of our time. 

Real Estate can only fail when humanity fails.

IE - overdeveloping, overconsumption, etc.

Take the down of Paradise, CA for example. No homes should have been built there in the first place. But they were, humans told themselves meh, we'll prepare for any natural disasters, and then they realized mother nature doesn't care.

Plague's diseases and drug resistant bacteria are also rooted in mother nature. When we cut down too much of the Amazon, Indonesian forests for wildfire, aren't able to grow food through extreme weather conditions and realize pesticides cannot keep away the new pests, then we fail ourselves, and the subsequent loss or migration of life means there's holes that won't be repaired in our lifetimes. 

Thank you for this. I was initially shying away from the suburbs as rental values seemed quite low compared to initial equity (I don't purchase with appreciation in mind), you run into more vacancy issues (for houses above 300k) with schools tending to be a priority - so if you miss having an open house leading up to or during the summer months, it sits. I'm trying to see if any developers are offering pre purchases on apartments near Domain10. 

What if it is an apartment or house in need of renovation - how would you upload those pics to the MLS? Are you advertising on craigslist... Do you pull vacancy stats from your agent or the actual owner/manager of the complex you are investing in?

When you buy these homes, is it at market value in a market that should be experiencing growth? 

I had alot of $ saved up to get into real estate, mainly because of sacrifices I made throughout 20's, so I could start with low interest rates. Going forward I know I need to better understand creative financing options that help me contribute more towards bigger scale and return projects.. understanding that is what really allows someone to scale at whatever pace they find convenient. 

However, I'm quite sure I do not want to be a full time landlord as it would probably drive me crazy ;]. For me, passive long term real estate is a great way to grow wealth, keep your sanity and stay in tune with the housing market. 

Will do. I will message you when I have an exact idea of what I want to look at. Would I deal directly with you or an agency?