All Forum Posts by: Larry P.

Using the 70% rule with an ARV of $350K you need to pick this up for about $132k. At the end of the day with the number you provided you would be risking $309K ($196,198.37 + $70,000 + $21,361.63 + $500 + $20,940) for the hope of making $40k by exceeding your comps. You need to run away from "deals" like this. If the units are currently rentable and market rents per unit are $1500-2,000 per month (enough to cover your mortgage by renting 2 of 3 units) this could (not saying it is) be a decent buy and hold deal and/or something to house-hack with to get your feet wet but I would not consider it for your first flip.

I can't find any mention in the current version yet but an older version (2014) of the FHA Single Family Housing Policy Handbook IV. Appraiser and Property Requirements for Title II Forward and Reverse Mortgages B. Property Acceptability Criteria lists the following;

iv. Proximity to High Pressure Gas Lines A dwelling or related property improvement near high-pressure gas, liquid petroleum pipelines or other volatile and explosive products, both aboveground and subsurface, must be located more than 10 feet from the nearest boundary of the pipeline easement.   (I would have about 30 foot between house and the edge of the easement.)

vii. Stationary Storage Tanks If the subject property line is located within 300 feet of an above ground or subsurface stationary storage tank with a capacity of 1,000 gallons or more of flammable or explosive material, the site is ineligible for FHA insurance. This includes domestic and commercial uses as well as automotive service station tanks. (N/A in my case but is good to know.)

It appears that Federal, State and Local governents have eminent domain authority.

@Jim Adrian   Makes sense; Your response is much appreciated. 

The proposed pipeline would run from the front of the property to the back and would have a 30 foot wide easement for the length along the edge of the property line. Other than having an easement covering about 1/3 an acre and loosing about 50 trees which I planned on thinning out anyway I don't expect there would be significant degradation on the usage or value of the property. They indicated their offer for the easement would cover the easement and the value of trees they needed to remove. 

I have a property in Charles County, MD that I just started rehabbing. I was contacted by an architect and engineering firm a few years back about their desire to do a geotechnical survey related to a potential gas pipeline across a 500-foot length of the edge of the property that would be within 75 foot of a single family 4 bed/4 bath home. I had not heard anything in a while so I thought they decided to do something different but  I got an email indicating they are scheduled to come out within the next week to actually do the survey.
 

Does anyone know how having an 18-inch high-pressure gas pipeline across your property affects property values and if it affects the ability to have certain loans, FHA, VA, HUD, conventional loans underwritten? At this point, I am not sure if I should put cash into it and sell it as quickly as possible or wait and see what they offer for an easement in the next few months before determining how much to put into it.