All Forum Posts by: Mike M.

Could there be a low suction pressure switch or a differential pressure switch across the filter? If so perhaps there's a malfunction. I wouldn't have a clue as to why there would be such instrumentation in a residential application. I'd like to hear the resolution!

Get it in writing and determine what you'll do if renovations exceed one month (assuming it's expected to be one month or less per your offer).

It doesn't have to be one at the exclusion of the other, for starters. I would want to walk each property myself. Inspectors focus on functionality but not necessarily execution. All tenants are going to expect a baseline level of functionality, but the execution is going to play a part in your rental income profile. I'm split on the value of inspections. I am probably due for another inspector on the next go-round to determine if my perceived lack of value is the inspector or inspection itself.

What about seller financing? At 88 I'd imagine the man wants out of managing properties (assuming he does). Could you buy a block if properties with a small down and favorable financing and refi in the future to a conventional loan (ex., 5% down, 5 year balloon, 30 year amortization, interest only)? Perhaps creative financing is a way to break in with this seller at a price that may be closer to what he wants. Anyway, the above is purely for illustration with no guarantee it resembles anything you may want to pursue. I can't speak to the man's motivations but at 88 I want all properties gone and be living off the interest on my big and fat (hopefully) savings account.

Did your buyer request any estoppel letter from you and/or tenants? If not, they are playing with fire, and should you not tell them they could get burned. From your standpoint, I'll guess all you have to do is perform per the contract. If your buyer doesn't know about the deadbeat, it may just be your interpretation of ethics. The last two properties I bought had deadbeat tenants in them. I offered cash for keys at $500 and had no problem getting either out in a 2 week time period. Both were on a M2M lease so I had already served both with termination letters so they saw the writing on the wall. All this being said to illustrate buyers can inherit tenants but I knew what I was getting into.

Thanks @Mark Brogan .  Do you remove Sheetrock up to where wire is run thru studs, pull new wire, and re-sheetrock?  Have you seen this add value to the property's appraisal?  It seems to me that electrical would be something buyers just expect works and wouldn't necessarily appreciate a house rewired with 12/2 Romex versus a house full of GFCIs.  There's definitely a cost adder to go your route.  Then again, I've never flipped a house so I've no data to support/refute my assumption.

I can't move the water heater easily, so she may stay and leave it to a buyer to camouflage it as they see fit.

Thanks again.

Two questions for you more knowledgable rehabbers: 1. Several rooms in my project are fed with sheathed two-wire supply (no independent ground). Electrician said NEC would allow replacement of outlets with GFCI and "no ground" label. If I can find the lead outlet, can you replace it only and will it qualify the others downstream, or does each outlet have to be GFCI to meet code? I have a water heater in the laundry room. We are enclosing laundry room and making it accessible internally (only access external today). For aesthetics, I was thinking of placing a curtain around the heater. Imagine a 1/4 circular rod with 18" clearance from the heater. Before I leave another unreturned message with the city, what say you? Legal? Wise? Thanks as always.

No problem with M2M. That's my standard term so no experience with an increase in rent. If your tenants have been good, I would just stay at the same rate and see if they'll work with you on showing the property if you go that route. I only have had two turnovers but didn't show the property on either before they moved out. Part of it was the timing and part was my desire to avoid juggling schedules. If you have pictures prior to move-in, I'd post the place 30-45 days in advance to get word out. The tough part with homebuyers is that it's hard to commit to moving until all underwriting and inspections are done, which could literally be a few days before purchase. Good luck. I can tell you I never thought I'd fill my vacancies but both are filled. It does suck to see that mortgage payment go out with no offsetting credits coming in.

Had a flighty woman tell me she'd sell a $75K ARV for tax roll price of $65K. House was a complete mess with easy $30-40K in rehab. I finally offered up to $12K, only heard crickets. House still vacant near 2 years later. To answer your question, my guess is no one. I suspect these owners will pass this junk to heirs and it'll be dropped faster than a hot potato.

It sounds like the eviction issue is significantly secondary. There's at least two failures if the pipe was physically restricted and the water continued to run. Is there a reason you are not filing an insurance claim? Best of luck - ugly situation.