All Forum Posts by: Katherine Roberts

I've posted multiple questions about this duplex we are (potentially) about to close on. I am in over my head and need more advice. The duplex was a SFH converted to a duplex. They listed it while the plumbing wasn't finished. We were supposed to close on Monday but the permits are still open. They were supposed to put a firewall in the attic on Monday and we had more inspections Tuesday. When we got there Tuesday, they were still doing the firewall and there was a hole in the ceiling from where they fell through. There were 4 other noticeable ceiling patch jobs and the drywall in between the units was popped out slightly. A toilet was also cracked and leaking. All of this happened since we went under contract. The inspector noticed that the water barely flows through the pipes when multiple things are running on both sides. My realtor told the listing agent everything we found and she drove over to be at the inspection, and then the buyer showed up. Lol

They were supposed to add ventilation to the crawl space, grade the front yard, remove an old brick post and cement slab, add flashings to the roof, and more but he didn’t do any of it (we were supposed to close Monday- he’s had over a month and has gone out of town). 

We told the listing agent that we would not proceed if the water pressure wasn’t fixed yesterday and then this morning they requested that we go ahead and close with the open permits and the promise that he’d complete the job. We told them absolutely not and I started to get concerned. We haven’t even gotten the appraisal. And there’s no certificate of occupancy yet??? The listing agent has lied multiple times about different things, and there are multiple red flags that have popped up. I did some digging and it turns out the seller (he’s a flipper) has been sued at least twice for not paying people back (a contractor and someone for a home loan). And he refused to give me the names for his contractors.

This is our first purchase and I feel like this is just chaos. I really don’t even want to close on it anymore. I feel like he probably cut corners, he’s run out of money, and he’s doing shoddy work to try and get things done. Does anyone have any advice? 

Quote from @Lara White:

Hi @Katherine Roberts - I'm not a tax specialist in any way/shape/form... but I don't think you can get a sales tax exemption for your real estate company. I keep my receipts and get credit/expense it on my tax return - my houses are held in an LLC. I would definitely ask your bookkeeper or tax preparer here to make sure, so you don't lose out on some $. But I think the answer is no bc it's deductible a different way!

Thank you!! I spoke with my tax preparer and she said the same thing. I appreciate you answering.

Quote from @Matthew Paul:

There may be a pressure regulator at or near the main shut off , it could be turned down too low , or the screen could be clogged . 

You can also call the water dept to do a pressure and flow test . 

If its a low pressure situation from the city , install a booster pump 

 Thank you for this information! I sent it to my realtor and hopefully they can get it figured out before we close.

Quote from @Glen Wiley:

I owned an older home that had this issue, it ended up being the line from the water meter to the home. Due to the digging involved we spent $8,000 to have that line replaced (about 4 years ago in Lynchburg, Va). I recommend that you include a concession from the seller.

 They just redid all the piping so I don’t think they would agree to that unfortunately

Hi, 

We are about to close on a duplex. We had more inspections done and we noticed the water pressure is super light when multiple things are running. All the piping has been replaced. This seems like a big deal to me because the water was barely coming out of the shower head when two other faucets were running. I feel like that is something that tenants would definitely complain about. Is there an easy fix to this? 

Hi,

I own two businesses, real estate investments and a retail business. For my retail business I have a sales tax exemption. Can I get one for my real estate investment business as well? I need to buy appliances and would love to save some money.

I’m in Oklahoma.

Quote from @Jacob W.:

As others have said, a firewall usually just requires fire-rated drywall on both sides of the studs separating the attic space. The sellers should be able to do the firewall pretty easily. Fire-rated sheetrock is available at all the big hardware stores. The seams typically need to be sealed with fire-rated sealant to prevent smoke from passing through seams. It's just red gunk in a big tube applied with a caulking gun. 

We just found out it doesn’t have a firewall at all. We didn’t realize that they had open permits when they listed the property. They never disclosed that. We should’ve known because they were working on the pipes still. But this is the first time we’ve had an offer accepted, so we’re learning as we go. We called the city inspector and he said the seller can’t get their permits signed off or the certificate of occupancy until the firewall is put up. So we’re waiting to see if he’ll do all of it.

Quote from @Ronald Rohde:

I'd say thats not typical. I would not sleep well at night knowing shared attic was up there!

That’s how I felt too.

Quote from @Alan F.:

A firewall between multi family units has to do with fire spreading, the UBC (universal building code) is very specific, the fire rating must be maintained. Penetrations must be fie sealed. Local codes may actually be more stringent. Do legal permitted work, people sleep in these structures.

Knob and tube wiring is not ok, there too many reasons to unpack in these threads but some are, no grounding, old annealed copper, improper insulation, switched neutrals and speration of power and neutral creates an electro magnetic coil

Electricity does not flow through a conductor it flows around a conductor (that's how a transformer works) Do not take building advice from investors.

And as Mathew stated tennants should NEVER go in an attic.

Manage your risk, ignorance is no excuse when in front of a judge.

So we just heard back that there’s no firewall at all between the units. They got the proper permits, they just have the final inspection. The city inspector I spoke with said they’re required to have a firewall in the attic. He said the attic is the last thing they inspect. I’m not sure if the inspector didn’t notice the lack of firewall throughout the units or what. 

I know many older duplexes don’t have firewalls, so I guess I’m trying to figure out if this is a deal breaker? I wouldn’t want someone to get hurt, nor would I want to be held liable if there was a fire. Is liability even an issue here? 

This is all new to me and I just want to make the wisest decision I can.

Quote from @Matthew Paul:

I NEVER , EVER  give tenants access to the attic . 

 How come? This is our first property so I’ll take all the advice I can get.