All Forum Posts by: Konrad R.

I have not reviewed the lease. I'm in the process of obtaining it. The unit is a 2/1, so they will not have a functional bathroom if I try to remediate the mold. The tenant has only been there for 2 months.

I will get the mold tested. Do I just use a mold remediation company to test it? I'm concerned they may just state it is toxic in order to get the removal job.

I'm contemplating the purchase of a property. I did a walk through and noticed mold all over the ceiling in the bathroom. The window also had some mold. I'm guessing the mold is from poor ventilation and/or a roof leak over the bathroom. I'm planning on replacing the roof and tearing the bathroom down to the studs. 

The problem is that the tenant does not want to move out. The current owner doesn't seem to care about liability issues. There is also a rotting deck in the backyard that the tenant barricaded off so her kid will not get hurt (I will repair that immediately). 

I tried to add removal of tenants as a contingency, but the landlord for some reason will not budge. I'm planning on trying a cash for keys approach during the inspection period. If that fails, do you think it is too much liability to leave the tenant in place until the lease is up? I don't want to remove the mold while she is living there. I don't want them getting sick during that process. What are your thoughts? I can always back out if the keys for cash does not work.

Thank you

Does an offer satisfy the identification requirement for the 45 day timeline?

What if the offer was not accepted and the property goes back on the market? If a second attempt was made after the 45 day timeline, would it still be considered identified since an offer was made prior?

Thanks for the help Jeff. I think I'm going to back out of the deal. There is too much risk. I didn't budget for the entire house having to be resided.

Is there any harm in asking? Will asking open the door for the seller to back out?

I'm concerned about the siding. I budgeted for some siding repair. The siding may have had class action status that expired years ago. Unfortunately, I believe it is too late to file a claim. I have yet to verify that the siding was manufactured by the company or not. 

I actually bid higher on the house than anticipated. I might move into it in a few years. The house did not make sense to bid on as a flip house. After repairs it will likely be 20k to 30k below comps. I also had major tax advantages by purchasing it. I;ll just rent it for a few years and then move in. I can also pull a mortgage on it if I need to access cash for other endeavors. 

I know most REO's are sold as is. I"m trying to lineup an inspector and possibly a couple of contractors to get concrete numbers on repairs. I realize that things that should have been noticed through visual inspection should have been assessed prior to determining my offer amount. I'm just wondering if additional things are found. Do banks normally reduce the price or make any repairs?

There was a lot of offers on the property and the property went for over the list price. There was a lot of activity on the property due to the low list price. I think the agent does this to elicit bidding wars.

I've been to a few REO's in my area and they seem to be going higher than what the auction closed at. There have been bidding wars on a few of them. I know getting them prior to the bank owning them adds a lot of additional risk. I've noticed a lot of the properties up for auction do not allow for an inspection. How do you run the numbers if you can't see the interior? Do you just plan for worse case scenario?

I went to one house today. It was vacant, so I walked up to the house and looked through the windows. The interior looked in great shape. I noticed that the cleanout for the sewer line was dug up. Also, there was a note on the door from the utility company. It stated that the leak was after the meter and the water has been shut off. It suggested to call a plumber to resolve the issue. I'm not sure how significant the leak is. It could be a busted pipe underground. 

What are your thoughts on buying houses that do not allow bidders to look at the property?

I'm just starting out. I'm looking to get into rental properties and flipping. I purchased the bigger pockets book on the latter from amazon. I want to get me numbers as close as possible when I do analysis on potential properties. Do you have any recommendations on content I can read (i.e. websites, books, etc.)? 

I'm trying to evaluate a couple of rental properties right now. I've been using the 50 percent rule and then going a little deeper if the numbers looks good. I just don't want to miss anything. 

I haven't really gotten into financing properties yet. I'm going to start by doing cash purchases (some will be 1031). 

I did not inherit the property. I'm thinking about doing a partial 1031 exchange. I know the basis gets rolled into the new property. I did not take a tax deduction for the property over the years. Do you think the RE tax would be rolled into the new property, or can I take that deduction this year since the property is being sold?