Arthur,
“As-is” or not, the price has to reflect the NOI (cap rate you want to obtain) with the expenses for updating the septic system to the level required. “Alternative solutions” don’t really matter as the only opinion that matters is the county inspector and what he/she will require.
If he’s not willing to include that, walk away. If the county is getting involved now he’ll become a little more rational in a short time. If not, fine, don’t make his problem your problem.
Lyal
Alternative Septic Systems - Posted by Arthur Mooney
Posted by Arthur Mooney on September 24, 2003 at 19:02:14:
I’m in the process of purchasing a Mobile Home Park and the drain field did not pass inspection, then noticed sewage on the ground, coming to the surface, the county is about to get involved. This is a really good deal hence my continuing to pursue this however, the bank won’t finance unless I prove there is an acceptable solution (pass inspection or provide an acceptable alternative solution)…i.e. connecting to county water and sewar (too costly) and suggestions? Thanks
Re: Alternative Septic Systems - Posted by Tony-VA/NC
Posted by Tony-VA/NC on September 27, 2003 at 09:54:03:
Septic systems are cause and effect. There is relatively little mystery here.
When was the last time the septic tanks were pumped? When was the last time the lines were blown out (high pressured air works better than flooding the system with more water).
I would have a couple of septic repair companies come out and provide bids and suggestions.
You will also need to find the source of the problem, which is likely to be too much water. Even a dripping toilet seal can flood a septic field over the course of time.
Replace the toilet flappers, old faucets, add individual water meters and your water use will go down to a more acceptable level.
You are in luck that you have room to add more lines. I would certainly consider this. Get a couple of companies to bid this as well.
In time, you may want to go with the city sewer. This may free up space for you to add more lots as well. It will also make your park more marketable in my opinion.
Posted by Arthur on September 25, 2003 at 07:55:06:
Thanks guys, but the property is “As is”. I do think that I can get him down but I need to show, he and the bank, alternative solutions, and those cost. I can then say to him, “look its going to cost $50K, I think you should cover it” or “go half” whatever, its still a decent deal. Secondly, the finance company will see that there is a solution and provide funding? There isn’t a lot of room for another drain field, I’m 1,000 feet from the county water/sewar, there are 5 distribution boxes so “pump and run” at $300 to $500 a pop “could” get costly. Especially if the alternative takes a while to get installed, I was quoted by a county engineer of 6 months to a 1 yr. to connect to the county? How does the lagoon, sand filtration system work, is it something that can be used with no “additional” available space or does it take the place of the drain field? Thanks.
Posted by Philip on September 24, 2003 at 21:15:17:
an expensive filtration system with a “underground lagoon” or sand filtration system.
Cost 40k to put one on a park I was looking at.
I think Lyal hit it right on the head, Make sure this guy takes care of this, or reduces the price enough to cover it…plus some.
I walked away from the deal I looked at.
Philip