All Forum Posts by: Megan Phillips

Verify the specifications for 203k rehab loans - I was under the impression that they can be used for "needs" (house *needs* a roof or hot water, house doesn't *need* granite countertops and new cabinets) and not necessarily so much for aesthetic upgrades. I have not used this program, so I can't confirm but I feel like I read into it a bit and it had some restrictions, so just verify before assuming they will pay for all of your cosmetic work.

I think the purchase price + repair costs together need to = 70% of ARV, that way, once you have reached the ARV after repairs have been made, you refi and get 70% back, which is all of the money you put into it (assuming correct ARV and repair costs).

170,000 + 37,000 = 207000 x 0.7 = 144,900 = your offer

Agree with @Paul Choate - the classes are designed to get you to pay for more expensive classes in the future (the whole "we'll show you how to increase your credit card limit in a "negotiation" training" so you can turn around and give it to us). It's all a crock. I went to one and walked out about half way through when I realized it was just nonsense/a salespitch. 

Just stick to BiggerPockets.

"I’ll give you a minute to wipe away the tears..."

Hilarious.

Number one rule I learned (probably from the podcast, or maybe one of @Brandon Turner's books) before I even got into RE - never rent to friends or family! That doesn't even get into the discussion about paying less than market rent and just a weird situation period...

Also - just have your gf read this entire thread! 

@Rafael Zavala why can't you sell next year and still avoid capital gains? I thought the requirement was having to live in the property for 2 out of the last 5 years?

@Braden Leonard The dug well is an issue, but I wouldn't immediately assume the E. coli is coming from the septic system. Dug wells are similar to drinking out of a mud puddle, and E. coli can come from any animal in the area (mice, etc). They are just gross, so I agree you should drill a well. On the other hand, E. coli being in a dug well is practically expected because by their very nature, they are a hole in the ground collecting water and have a high level of exposure to potential contamination (and therefore it's really not a big deal...) - they are just going to throw some bleach into it, re-test until it is negative for EC and total coliforms and say "E. coli? what E. coli?" 

I would try to have a septic report done as part of your due diligence and see what the state of it is before assuming it needs to be replaced. See if a couple people can inspect it.

I would just put flooring over the asbestos... no need to disturb it if you can go over it without any aesthetic issues.

As far as walking away over 5k... it depends on what actually needs to be done. Drilled well is a definite for me, why not get actual quotes for costs and have the seller split them or take from price.

Right... IF you win, they pay for the attorney. Attorney's generally will speak to you about your situation before moving forward and let you know if it's a viable case.

Read your landloard and tenant laws for your state. If you don't understand them, talk to an attorney that does. They will tell you what the laws are, and yes, all courts will go by LAW regardless of the lease terms.

NJ Landlord/Tenant Laws

Was there an initial walk through with photos, and and move out walk through with photos? Or a list of potential charges if things aren't cleaned properly. It kind of depends on your lease, but if they don't have any proof, they'll be up a creek if you get a decent attorney. Ask for proof of costs. $187 for caulking a bathtub is hilarious. Were the oven and dishwasher broken?

They can't charge for basic wear and tear - aka the paint brushes and spackle and cleaning supplies (unless there were holes in the walls or some damage you caused).

They can't prove you caused the mold in the bathroom, unless they have before and after pictures blatantly showing it, you still should have cleaned it to the best of your ability, but even so, mold is cause by lack of airflow, generally the landlords problem.

They only have 30 days to return your deposit or the remainder of deposit and a list of what was charged out of it - any thing over 30 days, you get your money back, regardless of actual damage. Court will laugh at your contract stating 60 days.

I would go after them, you'll get your money back, probably all of it and maybe more. Some states require they pay you double or more for not following the law and withholding the deposit, so talk to an attorney specializing in landlord/tenant laws. Let us know how it turns out.

Refinancing is not the same as a HELOC. In most basic terms - in a refinance you are getting a new mortgage on the property, replacing the current mortgage (or getting one period if you paid cash). In a HELOC you are getting a line of credit (loan) for the equity you have in a property.

If you paid for a property in cash, you should be able to refinance it into a conventional mortgage and get some cash out of the property, depending on how much you bought it for/what it appraises for during the REFI. Not an expert, but that's my general understanding.

Could you get quotes for cost to do all new system + leach field? I think as long as you budget for it, you'd be okay.