All Forum Posts by: Jinglei Shen

Seller is a real estate agent, he owns a LLC to flip house and invest in real estate, the property is sold under name of LLC.

Hi Sasha,

Thank you for your response. My agent has found the financing contingency states that if financing is not obtained due to a low appraisal, the contract is void, the EMD must be returned to the buyer. The title company replied that when a contract is cancelled, they do not assume anything for the same reason. what they need is a signed agreement between seller and buyer telling them who gets the EMD. if there is no agreement, they will continue to hold funds until there is a mutual signed agreement. Seller is not willing to sign the agreement, he is being very difficult now.

Your thought is appreciated.

I was in a contract for a duplex, the appraisal come back materially lower than asking price, 14% cheaper, the seller made my agent to challenge the appraisal by submitting a set of comps at and beyond asking price in the same area, we ask my lender to revalue, the revaluation result came back, same price as initial appraisal. The seller is not willing to lower the price, so I decide to walk out the deal. The seller is being difficult, first said only return half my deposit, now not willing to return whole deposit using me passing the inspection date as excuse, my agent is fighting for me and said to the seller it is about financing bank is not lending at the asking price, the contract has general terms about financing, it is a standard contract my agent offered, my agent told me he is going to call the title company, hopefully title to return my deposit.  It is my first out of state investing deal, Ohio is one of state does not need lawyer to review contract, so I have not hired a lawyer to review my contract. 

Any other investor has experience this before and what are the course of actions I can take to have my deposit back?

I am looking to purchase this investment duplex property which was built prior to 1940. All state said they cover cash value for properties built prior to 1940, drewlling comes out less than half of asking price. The insurance quote is $1476/year, deductible $2500, 300k liability. The agent said this is likely a market standard. Anyone who had a agent referral that deals with this type of old property can get me a better quote.   

I was told by an agent Knoxville new build don't sell to investor because of limited inventory.  only small builder or home are not selling fast enough would consider sell to investor.

Anyone in Knoxville could verify this or comment or connect me with builder. 

I am building my investment portfolio(duplex) in Ohio Cleveland, a few properties i have analyzed  with net cashflow  around $100 to $290 

here is one deal I am analyzing

Duplex generates $1590 income /month together,

purchase price $123,000

rate 7.5%, downpayment 25%

5% vacancy, 10% mgm fee, $1400/year insurance,10% capex, 5% maintenance,

COC is 8.73%

monthly net cash $277

this deal meets1% rule, bring in positive cash, my question is it in normal range in Ohio Cleveland market?