All Forum Posts by: Dan Madden

Thanks Wayne for that insight.  Prompted me to email the local zoning administrator and call the local building department.  Both were very helpful and indicated no violations, no fines, all taxes were current. 

Emailed my realtor this morning to schedule the closing for tomorrow or Wednesday if possible.

So looks like were going to own our first investment property with a house on it.  Woohoo!

Thanks all for your input!   

Thanks Chris - I agree!  I did get a survey quote of $475.00 but there's really nothing to worry about in my case.  We're probably going to build a 3 car plus attached RV garage with an upstairs 1 BR apartment.  We'll save the survey until then.

Yes my B-ll Exceptions included such language.  When we looked at the place the electricity was still connected.  Makes me wonder if we'll be on the hook after closing for a big electric and/or gas bill? 

Looks like it's on me to verify utilities & call the local building department and assessor's office.  Not sure how I'd investigate any unfiled liens, but it would seem to me if it was unfiled how would they have any success going after a subsequent owner?

Thanks for the response.   I do have a phone appointment with an attorney on Monday morning mainly just for reassurance.  The other information I referenced was just found online and seemed incomplete. 

I guess one of the primary things I'm concerned about is when it comes to sell that I can offer a Warranty Deed to the next buyer.

Fannie Mae does pay (I'm told by the realtor) for the title insurance.  Have quotes in hand for property insurance.   Also going to go ahead and have the property surveyed just to be ultra safe.  We were planning on getting that done next spring anyway.   

I have a similar dilemma.  Closing on cottage in a resort area up north this month (area's pretty dead in the winter except for a couple of winter events).  Debating if should get in there, un-winterize it, pay the heating bill & electric through the winter.  Some people do VRBO their cottages during these events.  Still only talking 3 weekends or so.  

I did check the local paper yesterday and there's double the amount of homes & apartments for rent as compared to back in August.       

I just received the title work for a cottage I'm purchasing owned by Fannie Mae.  The cottage is located in Northern Michigan.  The Schedule B-1 requirements include this clause:

7.  Covenant Deed from recited owner to recited purchaser.

Ok - expected a warranty deed so I had to Google covenant deed.  I learned this type of deed is one of the 3 types that exist in Michigan.  What I've learned I did not like!  Who would?  The PA gives me 5 days to object, which I have no problem doing.  Wondering what other more experienced Fannie Mae buyers would recommend. 

In particular this information I googled has me somewhat concerned:

http://www.milawyers.net/60.question

Especially the part about the survey.  Thought about including a seller paid survey included in the offer but agent said they don't pay for anything.  So I walked the property lines as best I could with a measuring wheel.  It's good size - 1.67 acres, I'm 99% sure there were no encroachments.

The B-II Requirements includes a clause:  "Any encroachment, encumbrance, violation or adverse circumstance affecting the Title including discrepancies, conflicts in boundary lines, shortage in area, or any other facts that would be disclosed by an accurate and complete land survey of the land, and are not shown in the Public Records."

Will FM bend and offer a warranty deed?  Will they in fact pay for a survey?  I'm not opposed paying for it (the place is a huge bargain). 

 Any thoughts or suggestions are much appreciated. 

On the surface seems like a very low risk endeavor if the units are on wheels.  If the plan doesn't work out I think they'd be easy to sell.  Particularly if they're attractive & well built.  Stick a sale sign in them & park them by the road.  Also put on craigslist. 

Sorry if this sounds a bit negative.  I do think location is critical.  I don't think even a super cool tiny house is enough of a draw without nearby attractions.   

This is simple:

"As for the inspection, a few things that stuck out... A/C calls for 20amp breaker..it has 30".

Ask seller to replace breaker - DIY less than $10.00.  If your (or the seller) are not comfortable shutting off the main breaker and switching call an electrician.  Cost perhaps $150.00 

"Furnace needs cleaning and tune up..leaks small amount of monoxide"

If the home inspector can't advise you regarding the safety of the furnace you might want to hire a qualified HVAC technician.  I don't think you want to expose a future tenant to a "small amount of monoxide".  However you might want to check out this link.

http://carbonmonoxidemyths.com/myth-1.php

Either way you could ask the owner to pay all or part of the cost of  a new furnace.  Worst that could happen is he'd say no.