All Forum Posts by: Tim Porsche

Thanks Peter, yes you're right, I want to get it sold soon so that money that's tied up can be reused on other deals. Also it's costing me about $1,000 per month to hold this property, which isn't that bad but isn't nothing either. 

I definitely did run my own numbers on comps before buying this one and also had my realtor run comps as well. When I purchased it, we were only estimating the ARV would be $230,000. Since that time my realtor thought recent comps justified closer to $260,000 or $250,000 which is why we tried that. So thankfully since I based my numbers on $230,000 ARV we still have some room to go lower.

Thanks Keyano! I was debating this as well, but since this area is not a really hot market I wasn't sure if starting the price off low would work to create a bidding war or not. My realtor suggested offering up to 3% buyer assist to help buyers who might have a hard time coming up with that 20% down since FHA financing isn't available on this house, so we did that a couple days ago and also dropped the price $2,000 to push the listing more towards the top. So far no bites, but we'll see what happens.

Another thing I'm wondering is how much of an effect rising rates might be having here. I noticed that since we listed the house on October 2nd, rates have gone up over 0.5%...so maybe a lot of people are waiting to see if they come back down again?

Hi All, so I recently purchased a house from a wholesaler as a flip project. The house is located in Effort, PA (Poconos area). It is complete now and was listed for sale on 10/01 for $259,900 which seemed about right based on recent sold comps.

The first week it was listed we only had one showing, so we dropped the price to $249,900 on 10/07. Since then we've had two more showings, and a verbal offer over the weekend for $235,000 which then became $215,000 because she's concerned there "might" be mold in the house, although when asked by her agent why she thought that she hasn't given any specific reasons...so not sure what to make of that as the house is completely mold free to my knowledge. 

One thing that might be causing an issue is that the house has a cesspool (normal for this area) that's less than 100 feet from the well, so due to FHA standards we can't sell to FHA buyers, just buyers with conventional financing or cash.

The house has 1,235 views on Zillow and 82 saves, so it's getting eyeballs but not many showings. So my question is based on the lackluster response so far, when would you recommend another price cut and how much would you drop? The lack of showings after two weeks just has me a little nervous. I don't want to leave a lot of money on the table, but I also don't want to still be holding this when Winter rolls around. I'm aiming to get a bare minimum $225,000 for it to make it worthwhile to sell, otherwise I'd most likely refinance and rent it out for now.

Thanks in advance for any advice!

Thank you for the replies everyone! It is much appreciated. Thinking about this some more, I'll probably end up using something like the RUBS system on this one and not worry about the submetering for now. 

Here's the relevant parts. I guess I'm out of luck?

A. Seller sells the Subject Property as-is with no warranty of property conditions. Assignor
makes no representation to Assignee, or its agents, as to the condition of the Subject
Property. Assignee acknowledges and agrees that it is purchasing the Subject Property on
an “as-is” basis and based on its own inspection, investigation, and/or evaluation thereof.
Assignee is not relying upon any representations of Assignor, Seller or Seller’s agent(s) to
investigate and report on the condition of the property. Assignee agrees to release and hold
harmless Assignor for any and all liability arising from the condition of the Subject Property.

B. Assignor, Seller and Seller’s agent(s) do not warrant that the property meets any current
City, County, State or Federal building codes, nor the presence of any and all outstanding
or pending violations against the property. Assignee assumes all responsibility to perform
any inspection, investigation, and evaluation thereof prior to the signing of this Assignment
Agreement.

C. Assignor makes no warranty, expressed or implied, regarding inspection reports or other
reports provided to Assignee by Assignor or third parties concerning the Subject Property.
Assignee is advised to independently verify the accuracy of all information contained in any
reports regarding the Subject Property.

D. Assignee acknowledges it is conducting a transaction dealing directly with Assignor for the
purchase of the Subject Property. Assignee is not relying upon, or being represented by
Assignor or any other Real Estate Brokerage in this transaction.

Hello All, 

I am under contract to buy a duplex via a wholesale deal and have already given the earnest money deposit. The house is being sold as-is. I still intend to buy the house, but found out something rather annoying. The wholesaler and seller represented this duplex as having two separate water meters and two separate gas meters. I now come to find out that this is not the case, and it only has one gas meter and one water meter shared between both units.

My question is, since this is an as-is purchase, do I have any recourse in this situation? Basically, I'd like to ask the seller to give me a credit for the cost to submeter the gas and water lines during the sale. If he says no, is my only option to back out and lose the earnest money deposit ($6,000) or go forward with the purchase, knowing I'll have a $3,000 - $5,000 bill or more if I decide to do this later?

Thanks in advance for any guidance. If it matters, this sale is happening in Pennsylvania.   

Hi All,

I'm in the market for my next multi-unit property. I currently have two SFH rentals and two duplexes. All of these were purchased pre-covid, and with the exception of one, all were found on the MLS. Looking now though, obviously good multi-unit deals are much harder to find on the MLS than they were several years ago. I remember back in the day I could pretty easily find deals on the MLS that weren't in high crime areas, where the numbers really made sense. Now it seems very different.

So my question is, for those of you who have closed on residential multi family deals recently, have you been finding these on the MLS or elsewhere? I'm trying to determine if I should focus my efforts more on the MLS or off market. Thanks in advance for any feedback.

Ouch! What did you actually end up paying for the repair? Hopefully not $80,000. I'll definitely get another quote, but do you think there's less cause for concern because the run from the house to the cesspit/septic is only about 10 feet? My thought is even if it has to be replaced, which is likely, it's not very long at least. 

Hi @Navid A., just curious what did you ever end up doing with the pump and how has it held up for you? I'm looking at a property now that has a sewer grinder and found your post while doing some research on them.

 Hi Matt, just messaged you. No there is still one person living there right now.