All Forum Posts by: Brandon G.

We put an offer on a fixer upper and will be using FHA financing to purchase it. The counter offer was much higher than anticipated with a note saying that they will have to fix any FHA required repairs. I don't really expect there to be too many repairs for the FHA loan, if any, if I understand the FHA requirements.

We do have a construction company and so should there be any repairs, we would prefer to make any repairs using our company. How can we structure the deal in a way that we can do the repairs ourselves without the risk of either party losing out in case the deal falls through?

 Thank you this is extremely helpful! Being that your addendum allows for 30 days, would leaving the option period at 10 days contradict this? Should I adjust the option period to 30 days or is that something separate?

@Geoffrey Hoffman

Thanks for your advice. Can you give me a few more details about how to actually formulate that wording and where to insert it?

For example would I write: "This contract is contingent upon full inspection of both units by Buyer. Earnest money will be deposited only after full inspection of both units by buyer."

And would this be placed in the Special Provisions?

I have found a duplex I would like to make an offer on. One of the units is occupied and so I haven't had a chance to inspect that side. 

If I submit an offer, they have to allow me access to inspect before closing correct?

The closing could take up to 30 day or so (I'm getting a mortgage) and they propose a 10 day option period. Do they have to allow me access before the option period expires?

When figuring cash flow where does the cost of rehabbing fit into the equation? I am looking at a duplex which will have quite a bit of work to be done ($30,000 by my estimation). 

Not accounting for the large sum up front, the cash flow looks nice - $4655 per year for both units which includes the cost of hiring an outside property manager (which I won't actually do). But then I have the $30,000 figure staring at me and don't know what to do with it. Should I consider it part of the mortgage principle? If I do that the cash flow drops to $2946.

Please advise.

Thanks for the info everyone. Is an ozone machine something you buy or rent? Just curious because i have no experience with that at all. 

@Steve Smith

Can you confirm whether or not this works even in a case where the walls which were exposed to the smoke were actually painted over? I seem to recall reading that this seals the smell in and requires the sheet rock to need replacing. I can't find that thread now.

I'm looking at a property now and there is a terrible smoke smell. The bigger problem I see is they've just repainted which in my mind makes the matter worse. Can someone confirm this? How would one go about dealing with a smoke smell on a property that has just been repainted?

So the legal descriptions only differ by a letter after the lot number 

So one is  Blk M Lot 20A and the other is Blk M Lot 20B. 

On the TREC 20-12 there is only a place for one legal description so would it requiring the filling of 2 contracts or could I just put the following:

"Blk M Lot 20A & Lot 20B"

Someone please confirm.