All Forum Posts by: PJ Singh

@Cameron Tope you are right credit union are by far cheapest to refi, as long as you have patience working with them. Being non profit, they are not much motivated to move faster and make mistakes along the way.

PM me, if you need few reco'.

@Alex Tahnat recently it happen similar to me, only thing is that I was the end buyer. The title company took a claim against the title insurance and clear the lien buy paying the judgment. All was done through title company. I didn't have to pay out anything of pocket. Goodluck

Thanks @Bjorn Ahlblad, @Greg Dickerson and @Steve Vaughan .

So the total cost to fix the listed capex issue is roughly $150 k. I maintioned to Seller broker about these issues and he suggested that these are typical for old C class buildings. He will present it to the seller, however, the seller won't provide significant concessions. Most likely, he will move to the next buyers who were within a couple of thousand dollar difference from our offer, after we cancel . 

Steve, you nailed it. The existing seller had the property for the past 2 years only. Based on PM/maintenence, this seller has inheritted these capex issue. At somepoint of previous ownership, this property was bought at forclosure. Therefore, it is visible to have deffered  maintenence

Thanks @Bjorn Ahlblad, @Greg Dickerson and @Steve Vaughan .

So the total cost to fix the listed capex issue is roughly $150 k. I maintioned to Seller broker about these issues and he suggested that these are typical for old C class buildings. He will present it to the seller, however, the seller won't provide significant concessions. Most likely, he will move to the next buyers who were within a couple of thousand dollar difference from our offer, after we cancel contract. 

Steve, you nailed it. The existing seller had the property for the past 2 years only. Based on PM/maintenence, this seller had inheritted these capex issue. At somepoint of previous ownership, this property was bought at forclosure. Therefore, it is visible to have deffered  maintenence

Hi BP'ers, 

I recently have an inspection done on my first 25 unit MFH under contract in Houston TX. It is a 1970 single-story, garden-style brick MFH ( 3 building).   As part of the general inspection report as well as other  specific inspection '' like roof, Foundation, HVAC" , following are the major finds: 

Foundation inspection: I understand with 50 years old building in the Houston area, there is a possibility of some settling. however, 2 out 3 building has significant sloping backward causing cracks in walls and floor.  Likely cause with inadequate drainage of rainwater in the backyard. 

Water drainage issue: Water pool in backyard with nowhere to drain causing foundation issue. Inspector suggested installing french drain or pumps to drain. 

Roof inspection: 2 out of 3 roofs are old roof and 1 is a 3 yr old roof. all have leaks. Roofer recommended replacing old roofs (beyond repairable).

plumbing: All are galvanized pipe.

Interior unit inspection: 8 out of 25 (32 %) of units are in rought condition which needs heavy upgrade.

During the initial tour, the seller showed only 1 unit (probably better looking one, in the new roof building and least foundation issues) to us to estimate our rehab budget. Clearly we underestimate the rehab budget on 8 units as well as major capex items. Our rough estimate to fix all issues is in six figures. 

 Question: Is it reasonable to ask seller concessions on all the above items to fix it? Or these issues are typical to the 50-year-old building and you choose not to fix it. What I was told by maintenance/PM staff during the inspection, these issues were inherited by the current owner and they choose to operate with band-it solutions on capex items. 

Also for the future, how to do I make sure, I capture major capex items before going under contract. 

I just want to get an opinion from experience operation/syndicators? Thank you in advance for your help. 

 

@Bryan T. Similar to sold comps on mls, checkout the recently leased house in that area. Days on market. What type of finishs? U ll be able to know about area.

If the property is sitting on market over 100 days there could be couple of issues. Overpriced, something wrong with property, less desirable area.

Good luck!

@Gabriel Benavidez PM me, ill send some local reco lawyer

@Gabriel Benavidez for regular LLC go to online companies like incfile.com they charge $50 to file. Note: I'm not CPA or attorney and not giving you any legal advise. This something I have used in pact.

@Edward Emerson

In Houston area, you can use redfin.com. not sure how often they update, but you I'll get sold comps. Download to excel. Goodluck

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