All Forum Posts by: Megan S.

Would love to be added: [email protected].

Has the St. Johns duplex sold? If not, would love more info.

Sadly, the place is already priced at the very high end of what I can afford (with a 25% down payment), so I can't offer to throw cash at the seller. Regardless, he made it clear he's unwilling to have the tank "officially" removed (for the reasons mentioned previously re: not wanting to have to report a leak if there is one). 

I heard from him yesterday that he can't guarantee he'll be able to remove the tank until March or April, and I really don't want to wait that long to close the deal, so I think we're at an impasse. Boo.

Thanks again for your feedback, though - much appreciated!

Thanks everyone! I am using a lender and I haven’t disclosed the oil tank. I guess I assumed it’s up to them to do their due diligence during their inspection/appraisal?

Hi everyone!

I've been negotiating the purchase of a triplex in upstate NY (Hudson Valley) and we're soooo close to coming to an agreement on the terms, but a half-buried oil tank is throwing a wrench in things. I'd love your thoughts!

Here's the deal:

There is a small half-buried oil tank under the front porch of the home that has not been used for decades. The current owner didn't do his due diligence on the tank when he bought the place, so there's no documentation on it. He has offered to have the tank removed, but is unwilling to have the ground tested to confirm there has been no contamination (he plans to "take a look at the soil" after removing the tank, and has offered to let me do the same). He says that in the unlikely event there has been some leakage, he will "dig out some of the soil and replace it."

I understand his position - if he gets the soil tested and there's been contamination, he will be legally required to have it remediated at a potentially large expense. With no test, there's no legal requirement to do *anything.* 

But obviously, my *** is on the line if I buy the place without getting the ground tested. Once the tank is removed, it won't be readily apparent that there ever was a tank in the ground, but I'm really not interested in lying to future prospective buyers.

If I don't buy the place, I'm guessing the owner will remove the tank and then sell to someone else who isn't savvy enough (or doesn't care) to ask about any previously removed oil tanks.

What would you do?

Yes, that helps clear it up. Still seems like they could offer something akin to what health insurance companies provide, with itemized “max amounts” that would allow a buyer to select the level of risk/reward that works best for them... ¯\_(ツ)_/¯

Thanks @Jason Bott and @Matt Leonard!

Jason, I don't think I understand your statement about insurance companies taking on more risk for less premium. Where does the increased risk come in? If they're insuring me up to, say, $100k instead of $500k, doesn't that essentially "lower their risk" by $400k?

Hi all,

I'm in the process of buying a triplex in the Hudson Valley and insurance quotes are coming in between $2000-$2500/yr (current owner pays $2400). This seems crazy high to me, as I insure my Portland, OR duplex for $548/yr, and it's worth roughly $250k more (market value) than this place in the HV.

The insurance broker I'm speaking to claims I have to get a full-repair-value policy (not a market-value policy), and estimates for a rebuild are coming in between $360k - $800k. Obviously, it would make no sense to rebuild at that cost if the final (new) building would be worth no more than $300k on the market.

I read this excellent post by @Paul Caudell that helped me understand the terms a little better:

https://www.biggerpockets.com/forums/432/topics/18...

So I guess what I'm looking for is an RCV policy that insures me up to the market value of the property, not the estimated rebuild cost of the property. But I'm not sure if NY state allows this?

Anyone have any experience shopping around for rental property insurance policies in NY state?

Thanks in advance for any input!

Megan

@Thomas S. in the original post @Dave Mosher explicitly states he's looking for advice on how to help someone out *while making a profit.* That's an investment question as far as I'm concerned. The two don't have to be mutually exclusive. I, for one, welcome the original question! :)

I use cozy.co

Dave Mosher - thank you for trying to find a way to help someone in your community! You might consider reaching out to an organization in your area that works with folks like this lady (i.e. affordable housing org) to see if they have other ideas or would want to work with you to keep her in her home. Especially in areas where housing is in short supply, they might be overjoyed to work with you. Good luck! Please report back.