All Forum Posts by: John J.

 This is probably the most valuable information I have received to help me focus on how I'd want to invest in VB. It was hard for me to really see this because a friend of mine kept over-estimating rental numbers, that I just wasn't seeing in the area I was thinking of investing. And if the rental numbers my friend was supposing were real, I couldn't imagine someone paying and not buying for cheaper. So, thank you!!!

Welcome @Robert Lafrance. That is an exciting introduction. I am learning the necessary basics to generating capital and investing in "good deals" in the Hampton Roads area.

@Christopher Lightner I think the Virginia Beach area would be a great place to invest, but I haven't drawn up plausible plan to start just yet.

I'm currently in the middle of buying my first property that I plan on living in for at least a year before I think about rehab and rental (less rehab, as it is in great condition).

@Mindy Jensen Hi, and as much as you can imagine, then imagine a little more. Thank you for the welcome.

@Christopher Lightner Hello to you, fellow government employee. This is my first foray into this forte. Ha!

@Kenneth Croisetiere

Just so you see it, I'll repost my response to you:

I have not gotten my own estimates on the requested repairs yet. I'm moving slower than I'd like, but I'm not sure I'm moving slower than a novice is expected. We're looking into estimates now, so we can know the cold hard cash value of what we're requesting and or what we'd be left to spend if we incur the defects ourselves.

 Thank you! Sound advice. Just one clarification, the protection clause is an Appraisal Contingency (Just learned this term doing a lot of googling.) it has nothing to do with AFTER closing issues. Still, I think your advice is sound and something I will take into consideration

@Kenneth Croisetiere

I have not gotten my own estimates on the requested repairs yet. I'm moving slower than I'd like, but I'm not sure I'm moving slower than a novice is expected. We're looking into estimates now, so we can know the cold hard cash value of what we're requesting and or what we'd be left to spend if we incur the defects ourselves.

So I am purchasing my first property. I plan on living in it for a year, then refinancing and renting it out. The neighborhood is great, the property seems good, but the negotiations are making me feel uneasy.

After reviewing the general inspection results, I submitted the issues I wanted fixed before I'd agree to buying the property to which I offered full asking price. Sellers countered with a $3k limit to all fixes including the 1% obligation($3.3k). The 1% obligation covers the buyer if during appraisal walkthrough the house is found to be uninhabitable (AC Failure/Termite infestation/etc) the seller will obliged to 1% of the property value to make the house habitable - they want to combine the issue I found after the in-depth inspection with the extra protection (which is understandable). I countered that I be in-charge of the order $3k would be used to fix the issues I found priority and be responsible for any other costs for the list of issues discussed, but I still expected the protection from the clause that would allow me to walk away from the deal if the house was found to be uninhabitable (AC Failure/Termite Infestation/Mold/Low Water Pressure). I feel the clause is necessary protection for me and my family in the unlikely case after spending Sellers $3k and what ever costs we'd put towards repairs, the home was still found to have major defects that could not be found during walkthrough and or inspection.

Why would a seller bully out a clause that basically says, "if the property is uninhabitable you can walk away." We agreed that we will only use 3K of sellers money to correct the defects already found and that we'd be responsible for any other costs, BUT if we find there's some kind of defect that is REDICULOUS we reserve the right to walk. That leads me to believe there's foul play, but me being new I know I can just be paranoid.

I would love some advice from buyer and sellers perspectives on deals like this. Thanks ahead of time!

Hello BiggerPockets, I am John Jacobs, no relation to Jingleheimerschmidt. I am a government employee. I currently reside in Virginia. I hope to buy and rent homes for additional cash flow and an addition to my modest portfolio.