All Forum Posts by: Ursula B.

@Jim Brown Thanks. Just thinking out loud, it made me feel much better to think I had a somewhat practical Plan B in the event the engineer gives me super bad news.

After a few phone calls, I finally found a structural engineer that specializes in residential properties.  They'll check out the balcony tomorrow afternoon, give me a verbal report and then a written report by Monday.  $400 for the report.

The flooring measurements were completed yesterday so I have to make my selections quickly.  Appliances will be delivered on Saturday.  I'm determined to make this property rent ready by the end of the month.  Almost there...

@Jerry Robinson If you can qualify for an account, Navy Federal does small loans at 75% LTV, 5% interest, 20 year amortization with a 5 year balloon. Not crazy about the balloon, but they will do single properties and blanket loans for small amounts (my first loan was $31,500 with them.

Good luck to you!

Ursula

@Account Closed So while I wait for a return call from the engineer...I kept looking at this pic and wondered out loud why I simply couldn't prevent access to the balcony by removing the locks and screwing the door shut.  Any fire code issues with that?  I wouldn't think it's a required egress since it's the 3rd floor, and I've lived in plenty of apartments with one way in and one way out.  Thoughts?  Only thing on the balcony is a very small storage closet.  All of the mechancials are inside the unit.

@Richelle T. Yep, and I knew better.  This balcony issue just confirms it.  Lesson learned. My other condos are in financially stable HOAs, I just took a chance on this one.

@Account Closed Thanks, I'll work on finding one in the morning, because a tenant  falling off the balcony would not be a good look for my landlording career. 

Congrats on your purchase!

@Account Closed Ironically I did due diligence on the HOA last year when I bid on the property that I eventually lost. That's how I know the HOA won't pay for the balcony...they're not financially stable. But the numbers looked promising so I was willing to take the risk on the HOA. And what I learned from the President is that with every unit purchased by investors, they get a cash influx. It's the O/Os that aren't paying the dues.

I'll still take your advice and call up the HOA President, but I just already know the answer I'll get.

@Arthur Banks Agree. We have a tenant that LOVES one of our rental homes. It was our personal home a few years ago, so every time it turns over we bring it back up to our standards before renting it again. Every time we see the tenant they let us know how much the LOVE the home.  And we love them as tenants. Win-win!

I'm starting this thread to keep me accountable for finishing what I started.

So I bought a condo sight unseen.  Completely by accident.  I was outbid on a unit in this building a few months ago, and I was so excited to see the price drop on this owner sell that I jumped on it, right around Christmas.  Gave myself 2 weeks due diligence, but with the holidays never got around to checking out the condo. Nevermind that it's in the next town over and I had no clue about the neighborhood. I woke up on January 2 and realized it was the last day of due diligence, and I couldn't get to see the property that day either.

So we closed on Thursday, cash deal. I got the keys when I got in town on Saturday, and I was like a kid at Christmas. Driving to the condo, the neighborhood was great, excellent location near major interstates.  The condo complex itself was just okay, but I was still excited.

We get to the front door of the building, and there's a sign that reads "Merry Christmas neighbors! Someone is trying to pick your door locks, so if you hear anything call 911".  I looked at my husband and asked what did I get us into.

We climbed the stairs to the 2nd floor, and I noticed a note on the door of one unit that said the water was leaking and someone needed to call the owner. Obviously vacant, so I made a mental note to find out who owned the condo.

We climbed the stairs to the 3rd floor, and I noticed the unit next to ours had a Fannie Mae acquisition notice posted to the door. Took a picture to capture the agent's contact information so I can find out the status when we left (notice how I went from wanting to run away to being interested in two more units in a matter of seconds?!?  Whats WRONG with me?!)

Inside of our condo unit is fine, wasn't expecting to replace all of the flooring but that's no big deal. After seeing the appliances in person, we decided to keep the range and replace the fridge and dishwasher.  Fine so far.

So i stepped out onto the balcony, and the floor gave.  Actually, I only got one foot out on the balcony when the floor gave. The wooden railing was rotten and looked like a strong wind would blow it over.  All I could picture was a tenant falling over the side of the balcony.  UGH!

So now I have to figure out how to have a 3rd floor balcony repaired or replaced. I have no clue about the costs, which is what is freaking me out. Forget going to the HOA, they won't fix it. And until it's fixed, I can't rent it.

So after kicking myself all day Saturday, I finally reached out to some contractors to see if I could get a bid on the work. Hopefully this doesn't take too long to fix!  In all, I guess I still got a good deal.  Here are the numbers:

Purchase - $25,000 - $750 commission = $24,250 net

Rehab Estimate - $5,500

Rental rate - $700/month

Taxes - $700/year

Insurance - $320/year

Maintenance/Repairs - $600/year

Management - $0 (we'll manage this one ourselves).

HOA - $110/month

Vacancies - $725/year

So has anyone ever replaced a 3rd story balcony? Would love some ideas on this one.  And yes, I've learned my lesson about buying something sight unseen.  But I guess it could have been MUCH worse.

Ursula

I'd be hesitant to say it's a cash offer if you are relying on someone else to front the money.  HMLs can and do back out of deals (or change the terms) at the last minute.  Without a financing contingency you're still on the hook for the purchase if you said it was a cash offer.

@Nalo Coban It's still a loan.  Unless you have the cash money in an account and can write a check for it, it's not a cash offer (IMHO).

Good luck to you!