All Forum Posts by: Ryan Moret

Hello!  I am in the option period on my first flip home and have come across a bit of a quandary.  The seller and I don't agree on the foundation issues in the home and I am looking for any clever solutions to work through this. 

I want to remove my bias here, so I will stick to the facts:

1. Home had foundation repairs done in 2008 and 2012
2. Seller had a 3rd party engineer do a class C foundation inspection on 3.20.2018 and provided the following:
   1. Overall elevation differential of 4.1 inches.  
   2. Master bedroom had a low points ranging from -0.7" to -3.5"
   3. "The house has experienced settling of the foundation"
   4. "It is my opinion that the foundation remains structurally sound and re-leveling is not required at this time.

During our inspection of the home we came across the following:

1. Noticeable sloping when walking around.
2. Buckling hardwood floors in the master bedroom
3. Cracked and delaminated tile in the master bathroom
4. Cracked bricks and mortar joints on the exterior
5. Home inspector said there is definitely evidence of foundation movement
6. Permapier came out to provide a free estimate and evaluation and suggested multiple piers along master bedroom as well as some other areas of the home.  Estimated approximately 10k in repairs.  These repairs were inline with the work that was previously done in 2008 and 2012 by a separate company.

Now here is the funny part...

The seller and the seller's agent both believe the home doesn't have any foundation issues because of the engineer's letter despite the visible damage and the home inspection and the pier company's investigation.  I am a little caught off guard as any buyer is going to bring these same issues to the table.  It would be one thing if they wanted to argue the amount they were going to settle for repairs, but they are simply negating them all together.  Obviously our rehab budget for this home doesn't have any wiggle room for 10k of piers.

Does anyone have any clever ideas to help convince these sellers that this is going to be an issue with any buyer, so might as well settle it with me rather than someone else?

Thanks!

Can you shoot me more info?

Does anyone have any recommendations for a mason in the Dallas area? I have about 240 SF of brick I need on the bottom 3' of a detached garage. the best number I can get is about $2800 and that seems a little pricy.

John can you PM me more details?

can you send me some pictures?

Thanks, Bob.  Yes I definitely plan on investing the money, its why we are looking for an investment property.  

Hi BP!  I am working on my first investment property deal right now.  First a little background and where I am at.

My wife and I just sold my bachelor pad condo and made about $55k off of the property.  We just moved to a nice little neighborhood here in Dallas and we would love to find a rental property around us as well (easier to manage this way and quality of renters would be great).

A house popped up for 200k that would ARV for $265k and somewhere from 1800-2000/mo for rent. I am checking it out tomorrow to analyze the exact amount of rehab necessary. For a gut check, i am assuming 20k of rehab (which would be pretty high, fingers crossed).

Though this maybe isn't the slam dunk of ARV*.70-Rehab, it does have some pluses that I think are worth considering

1. It is down the street from my current property in a fantastic neighborhood and would be able to fill with a renter in any economy due to proximity to university and great school district
2. I can fund this deal with most of my condo sale and a little bit of cash set aside. No reason to get crazy with HML or anything like that
3. Easy to manage this rental for a couple of years to avoid short term gains tax as it is down the street from my house.  The cash flow alone just may be worth it.

My question is, a convenient property that I can gain a decent amount of equity in and make a little month cash without over complicating the deal worth it?

@Dana Chun is this still available? I cant find it on MLS.

Hello BP!

Just putting feelers out there to turn up any potential deals in Richardson, TX. Looking for buy and hold, BRRR, or Flip Opportunities. Would be interested in potential partnerships as well.

If any of you know any leads, feel free to contact me.

Thanks,

Ryan

I got a hold of someone in the permit office.  They shot it down pretty hard - no habitable space is allowed in detached structures.  They also have a limit to the square footage allowed for a detached structure.  Either 8% of the lot or 40% of main structure.  Limited us to 585 SF.