Hey bigger pockets people!! Need some advice. I am knee deep in purchasing my first OOS rental in herrin il. Price 49990. Appraisal just halted the whole process. Here is what was said.
the foundation is poured concrete and is less than 4’ wide. The lip is too small to properly support the floors. There is no risk of collapse however the floor feels soft toward the outer walls. This isn’t considered a repairable item but could be detrimental to marketing”
Unfortunately, because the foundation cannot be repaired to adequately support the flooring, we would consider the property to be unacceptable. We have 2 options: the first would be to deny the loan for unacceptable property since this does not appear to be a repairable item, or the other option would be to get an engineer’s foundation certification from a licensed engineer to advise what needs to be done to repair the foundation. Then, whatever the report shows as needing to be done, we would also need to condition for that to be complete.
I am definitely going to figure out the cost of fixing it but would this be something you put back on the seller especially if it is a bank. Also with the cheaper price it still has at 5k of things inside needed to get it top dollar rented. Not sure if this is one of those instances that a cheaper house is costing more than its worth or just a normal hiccup.
Thanks for the help..
