All signs of floor joist rot, damage or settlement underneath.  

In a lot of markets people are saying that the deal flow is drying up, but I think that is just an excuse for people being lazy.

Just because the roof isn’t actively leaking (honestly the condition is so bad I would be surprised that it isn’t but I can’t prove it as my inspection was done on a dry day and the attic is “finished”) I have already compromised on a lot of the issues that inspection revealed and refuse to compromise on this.

John I have heard that argument many times and it is misinformed.First many attorneys are per hour and bleed you dry in the end.It's there operating structure to start low and keep billing and billing.Second the seller commission agreement is spelled out in the listing agreement.The listing agreement usually says selling broker to share a co-op of XX with the selling broker.If it is not shared then by the agreement the full commission goes to the selling broker.Usually the listing agent if they are not the principal broker owner are working on behalf of the main broker.So the listing agent does not have the authority to reduce their own commission.For example if a listing agent was to make both ends at 6% it could spell any reduction in commission will come off of their end.So I as a broker have an agent on a 50/50 split.100,000 sales price at 6% = 6,000 commission.The agent wants to reduce to 4% to get the deal to go through.In my independant contractor agreement I have them sign the split will be based off the total commission agreement before any discounts.In this case I would base it off of 6,000 getting half or 3,000 leaving the listing agent 1,000 before there expenses.In this case they would almost be working for free.John the seller has to pay the total amount of commission agreed to in the contract.We even have protection periods built in where we are still owed a commission if the seller tries to terminate unless they sign with another broker.This eliminates all the wait until it expires or say you have taken it off the market and we will do a back door deal.This is the number one mistake investors and buyers make.Broker and agents who do business this is not our first rodeo.We have seen all the schemes and ploys by buyers.I believe if buyers spent half the time getting their affairs in order to be able to purchase instead of trying to figure out how to screw a broker/agent they would get much further ahead.Smart investors do not even mention commission to listing agents.They just want the deal and say "thank you!"

The owner that died lived in the house since it was built (1968 if I remember correctly - don't have the listing in front of me).Also, looking at the property, I just don't feel concerned about flooding - maybe it is because of the drought here currently, but the creek is bone dry and it really doesn't look like it carries much water in normal times.

Things are getting cleaned up and dried out and the rain has stopped.

Also need to either tear down chimney or reinforce, replace downstairs carpet in one room, remove rotted rear deck.

In a bubble such as this I would prefer to keep some powder dry to for a rainy day and so I am not too exposed for the downside.Our compromise is to keep the first one because of the location, close to transportation, close to main roads, close to downtown, yet in a country-like, park-like setting.

You need to look and see if section 8 is doing an adjustment for your area soon where they are changing the max payout benefit on rent for that type of unit.I have seen this happen and then the tenant doesn't have the difference each month.Roof is a huge expense depending on how many layers need to be ripped off over the years and if you need new vents and plywood exterior is rotted in many places.Hard money absolutely can eat up any potential profit.Huge difference between 14% interest and points and a standard loan.If this property is fully performing with guaranteed rents I would look at bank financing or private money for cheaper debt service.

You can read until your eyes dry out but you must take action.