All Forum Posts by: Marcus Isaac

@Zachary H. With a 203k loan, it allows you to wrap your renovation cost into the loan, which is why would I rather pay for it now if possible so that I don't have to come out of pocket $5,000 in a few months or a year because one or two appliances go down. 

@Ben Wilkins My thinking is like yours in that I should be able to negotiate a lower price because of the fact that there are multiple units 5+ years passed their life expectancy. My agent is saying that if the units aren't broken then I can't consider them an item that needs to be replaced and the seller won't feel obligated to come down because of an old appliance that isn't broken. What are your thoughts on that? 

Thank you for all the responses

Hello All, 

I'm in the process of purchasing a duplex. My offer has been accepted and the the home inspection was just completed. Everything is in pretty decent shape, although there are some minor things the seller will need to fix. My concerns are more focused on the two old AC units (Trane - 1996) and the old water heater (Trane - 1996) - the other water heater was replaced in 2013. The inspector couldn't determine the age of the two gas furnaces.

My question as a buyer is knowing that these appliances are in theory going to "burn out" within a few years (maybe months), how should I approach the situation? 

For reference purposes, I have a 203k loan so I can wrap repairs/renovations into the loan:

1. Try to get the purchase price lowered, so that I can have more money for renovations and use that money to purchase new appliances?  *Would only replace what isn't broken as of yet because of the type of loan I have. My thinking is to replace it now when I have access to the money instead of waiting until they break and having to dig into the emergency fund.

2. Get a thorough inspection of the appliances to see if they are in good shape or need any hidden repairs that I can hopefully get the seller to fix? 

3. Take a risk and budget for potential repairs hoping that the cost of repairs or replacement won't exceed what was budgeted for it ?

4. Other?

Thanks in advance.

Great discussion.

@David Park I would be interested in taking a look at that map if you wouldn't mind. Thank you 

@Zana Blue I'll be the buyer in this situation. What you provided will definitely be helpful when I'm on the other side of the transaction. Thank you

@Kathy Henley Great questions. The questions I have so far are pretty standard, your questions hit on some additional things I will need to know as an investor. Thank you. 

Hello All, 

I'm in the process of looking for a real estate agent and I have a few that I want to contact. I just want to know the best way to go about seeing if they're the right fit. Should I treat it like a job interview where I'm asking them every question that I have written down or is there a "proper way" of asking your questions without it being so formal? 

I know this seems pretty simple, I just want to make sure I'm obtaining the information I need to know while not offending them (if that's possible). 

Thanks, 

Marcus

Welcome Ricky,

You came to the right place to learn.

Best of luck 

Hi Cicely, 

I actually have found all of the contractors I need for now. Thank you for reaching out. 

@James Masotti Thanks for the quick response, you spoke on some things that I need to look into deeper. And I definitely have noticed through my short time speaking with lenders that they all don't offer the same type of loans, some may lend to renos some may not, so you're right about finding a lender that works best for you. 

@James Masotti I just stumbled upon this post and what you said caught my eye. Will banks give you a HELOC on a property that needs a good amount of work? For example, if I bought a foreclosure/fixer upper with cash outright, would banks lend me money on the renovations based on the expected appraisal value (after renovations) or what it would be appraised for as is? Also would this strategy work for a flip or just an investment property? Thanks in advance.