All Forum Posts by: Prabh Virk

@Wale Lawal

Thank you very much for your time to draft this detailed response. It is really helpful.

@Jonathan R McLaughlin

Thank you for the response. I'll surely try to negotiate with the seller to get a workable solution for both of us.

What is the best way to obtain an answer from the city in such cases? I don't see a permit issued for it on the county assessor website for it.

@Henry Lazerow

Thank you for the response.

Our realtor is knowledgeable usually and pointed out a lot of potential mishaps on other properties however it seems this may be something she isn't fully aware of it.

I will talk to her to see and a contractor to see how much impact is it going to have on future sales.

Hi Bigger Pockets,

I am a new investor, trying to purchase a SFH to as an investment. This is a ranch built in 1952, we loved the location, and it is very reasonably priced (Bank appraisal came at the asking price). The previous homeowners (not the current seller) added a new 1 car garage section to the property. I checked the Google Maps images and the last image from 2011 showed this section there. So I think this structure is at least 10 years old.

We are currently under contract getting done through the inspections. During the inspection, our structural inspector found that the load bearing trusses of the garage were not done right. It had a sag in the beam that was repaired (unsure when) as a result of heavy snow adding the weight from the roof. I asked the inspector for a rough order quote for fixing it right, he mentioned that it is ~$5k to get it fixed. We're still under the grace period, to make the decision and could back out if needed.

I'm at the cross roads at this moment

1. Buy the property as is and stomach the expense to fix it.

2. Risk losing the property if the seller disagree and disqualify our offer and wait for a nice listing and a potential increase of mortgage rates (we're quoted 6.125% for a 30-year fixed)

What would you do in this case? I understand it is hard to provide an opinion without looking at it, and I shouldn't use stranger's to advise making investment decisions, but I'm interested in learning about your thought process. Are we getting too emotionally attached to it, because we liked this one after almost 4 months of searching?

Best regards,

Prabh

@Scott Mac, Thank you

@Leo R.

Thank you very much for such a detailed response. I appreciate the time you put in the response.

I couldn't agree more with you on your comment about preferring a C house in an A area over a house in a C area! This is so common to find, the other day I was driving across a neighborhood and a gem house (very well maintained from outside, clean, nice landscaping) was located in the mix of highly neglected ones. The area itself was bad, but the house was spot on, but I couldn't find myself courageous to think about it because it was surrounded by a block of mess.

Thank you for the tips, I will continue to look at more and more properties to get educated.

I am starting my real estate investment journey and educating myself everyday by religiously reading bigger pocket forums. Thank you all for the discussions to help newbies like me.

There are several articles and discussions recommending people to invest in B or C class properties and neighborhoods for good cash flow and returns. I understand the reasoning on the categorization this way to set expectations. However, i am having difficulty in assigning a class to the SFR, MF units that are on market. In my market, there are a lot of older properties so base on Age alone they start to land in the D if it is viewed through the lens of 'age of property' and I believe the assessment is highly subjective, but still how do you navigate it?

What variables you look for to assign a grade/class to the residential real estate units? And, where would you get the data?

Looking forward to your responses. Thanks, Prabh

@Justin Taylor

Hello, I would like to connect. I am a new investor who started in this space recently and would love to network and potentially partner on investments.