All Forum Posts by: Matthew Masoud

Hey guys, I'm purchasing a 5 unit and just got the report back. There is a lot here and I wonder what is urgent and what can wait. This is my first property so I am a little nervous. The property is fully rented.

It seems like a lot but most of it is small stuff. Let me know what jumps out at you. Thanks for the help!

ITEMS NOT OPERATING

-The hose bib on the back of the building does not operate as there is no handle – recommend having a plumber repair.
-It appears one of the gutter downspouts leaks as there is staining on the brick – recommend having a gutter professional repair.
-There are settling cracks in the brick exterior – recommend having a professional seal any settling cracks.
-The dryer vent cover on the back of the building is damaged – recommend having a professional repair.
-There is an exhaust fan on the back of the building that is open and does not close – recommend having a professional repair.
-There are cracks in the laundry room sink causing it to leak onto the floor – recommend having a professional repair.
-The asphalt shingled roof has a couple of nails popping through the shingle – recommend having a qualified roofer repair.
-The chimney on the north side of the building has loose and missing mortar joints – recommend having a chimney professional
repair.
-The bathroom sink drain in unit #2 is slow – recommend having a plumber repair.
-The tub/shower faucet in unit #2 leaks/drip when in the “off” position – recommend having a plumber repair.
-The back bedroom window in unit #2 has a broken seal and moisture staining between the panes - recommend having a window professional repair.

-There are at least two electrical outlets in unit #2 that do not operate – recommend having an electrician repair.
-One of the kitchen cabinet drawers is damaged in unit #4 – recommend having a professional repair.
-In bathroom #4, faucets to the sink and shower/tub leak at the handles or base when operated – recommend having a plumber
repair.
-There is a significant gap between the tub and tile in bathroom #4 due to settling – recommend having a professional evaluate
and repair as needed.
-In bathroom #4, elevated moisture levels were found in the wall above the window causing damage to the wall – recommend
having a professional evaluate and repair as needed
-The ceiling fan in living room #4 does not operate – recommend having a professional repair.
-The kitchen #5 sink drain is slow – recommend having a plumber repair.
-The refrigerator in unit #5 is not operating properly as the temperature 58 degrees – recommend having an appliance repair
professional repair.
-The kitchen exhaust fans in the units inspected do not operate – recommend having a professional repair.

MAJOR CONCERNS
Item(s) that have failed or have potential of failing soon.

-Possible mold growth was observed in the basement – recommend having a mold professional evaluate and rectify as needed.
-There appears to be some damaged and altered floor joists that are causing sloping floors – recommend having a structural
engineer evaluate structure and recommend repairs as needed.
-The boiler operated but does not appear to be operating properly as there is the boiler is indicating there is an “E 02” error –
recommend having a qualified HVAC technician evaluate boiler and repair/replace as needed.

POTENTIAL SAFETY HAZARDS

-There is a small deck next to the driveway that has areas of damaged wood, missing wood and no railings – recommend having
a professional repair.
-The steps and fence on the side of the driveway are in poor condition – recommend having a professional repair as needed.
-The electrical service mast cap is loose – recommend having an electrician repair.
-The laundry room electrical outlets are not GFCI protected and the outlet near the water heater is improperly wired creating a
reverse polarity - recommend having an electrician repair.
-There is an open electrical junction box that is not properly secured in the laundry room area – recommend having an electrician
repair.
-The electrical sub-panel#2 has ground and neutral wires on the same buss bar and should be on separate buss bars - recommend
having an electrician repair.
-The gas lines in the building do not appear to be bonded - recommend having a professional repair.
-The unit #2 bath electrical outlet is not grounded or GFCI protected - recommend having an electrician repair.
-The kitchen electrical outlets in the units inspected are not GFCI protected and at least one was not grounded – recommend
having an electrician repair.

0 Votes

Hello Bigger Pockets Community,

I'm finally ready to get into real estate. Chosen what kind of property I want. Gotten pre-approval for a 20% conventional loan and everything.

So far, in the past month, I've placed offers on 6 different properties.

Only 1 made it under contract but I had to walk away because of structural issues.

The biggest issue I'm running into is all cash offers.

Again and again I get told by my agent it's going to be a tough one to get because of the all cash offers.

Sometimes I'm even going $5k or $10k above asking but it still won't compete against cash offers that have removed the inspection contingency.

I'm thinking of approaching the selling agent directly so they are more likely to convince the seller to go with my offer because they get dou le the commission.

Just a thought.

Are others running into this issue?

Properties will stay on the market 24-48 hours and when they are picked up, it's an all cash offer with no contingencies.

I will keep trying but just a bit frustrated.

0 Votes

Hello Bigger Pockets Community,

I've been looking around the community for a while now and listening to the podcasts. I finally decided to take some action. I got preapproved and start placing offers. My first few offers fell through and I finally landed one that's in contract.

I'm nervous as hell so I thought I'd share the details with you guys and see if I can get some reassurance or at least some advice.

It's a 4 unit property for $150,000, fully occupied. One studio ($375/month), one 1-bedroom ($515/month), and two 2-bedrooms ($695/month each)

Total gross rent: $2,280

Morgage ($550) + Tax ($300) + Management ($200) + Repairs & Saftey Fund ($200) = $1,280

So from my understanding, I'm going to make about $1,000/month

Am I missing something? I know some things out of my control are possible like evictions or misc repairs.

I'm also kind of nervous because the building was built in 1898 but the two 2-bedrooms have been completely renovated.

Also, another thing that is making me nervous is their counter. I placed the offer for $150k and they countered with this.

"Hi Jared, Spoke with my partners and here is our response.

1. We added a 48 hour period directly after full execution of a contract, during which you and/or your clients need to walk through the property and determine if you are going to move forward.

2. We shortened the Inspection period to 10 days and the post-inspection period to 4 days

3. We changed the tax proration to short (very heavily traditional in Montgomery County)

4. We added an assessment that Buyer's will be responsible for after closing on the property. It is a sidewalk assessment that was revealed in the RPD and runs through 2027 at approx. $200 annually.

5. We eliminated Dishwashers from the inclusion list, as there are not any dishwashers belonging to the Seller. We have left our counter offer open until 8:00 PM this evening. Please let me know if you have any questions. Thanks, Kevin"

I told them shortening the inspection period was a no go so we were able to negotiate to 7 days. Does anything in their counter offer seem alarming?

I would like to thank the community to getting me to where I am today. I wish you are all doing well during the pandemic. Have a great day!