Posted by Mark (SDCA) on October 20, 1998 at 10:17:56:
One piece of advice. Don’t take either the seller or the tenant’s estimate of repairs. (How would they know?) Get a contractor’s estimate.
Cheers,
Mark
Help!! Need advice… - Posted by Kevin(OK)
Posted by Kevin(OK) on October 20, 1998 at 09:53:28:
…on a house FSBO (out of state owner), FMV $65K, NQ Assum. loan $36K (payments $386mo., rented for $450), owner wants $5K for equity. Sounds great, right. Well, like usual, there is a problem. The house has foundation problems (it is a house on a slab). Estimates of repair from the seller are $7K, but estimates from tenant (she wants to buy the house, but has little money) are $15K-$17K. I have looked at the house and the foundation looks pretty bad. The tenant says the foundation is starting to cause problems with the plumbing. My original thought was to assume the mort. and L/O to the tenant. I guess I could still do that, and not make the repairs because the tenant knows about the foundation and still wants to buy the house. Then after 1-2 years, have the tenant assume the mort… Or should I pass on another one.
Any advice?
Thanks
Kevin(OK)
Re: Help!! Need advice… - Posted by Mr Donald (NORVA)
Posted by Mr Donald (NORVA) on October 20, 1998 at 17:21:28:
Kevin,
Foundation problems usually lead to something worse. The structural integrity of this house can’t be trusted, and you shouldn’t have to sink your money into it to find out if you can remedy it.
You might want to consider another deal that might offer you less headaches in the near future.
Mr Donald.
Re: Help!! Need advice… - Posted by Tom Brown
Posted by Tom Brown on October 20, 1998 at 12:44:53:
I lived in the OKC area for 11 years so I know what you mean by foundation problems.The active soils in the area can wreak havoc on concrete slab foundations.
You probably have a slab on slab foundation and the plumbing comes in from underneath the slab. If the house is brick, take a look at the brick walls and look for cracking in the mortar joints. If the walls have significant cracking, you could have a big problem.
Have a contractor look at it if you have any doubts. I know that the contractors say that pier jacking will restore the foundation, but you still have to disclose it when you sell the house and it could have a negative impact on the marketability of the property. I know the VA in OK used to have quite a few properties with foundation problems.
It seems kinda funny though that the tenant would want to live in a house with plumbing problems. If you decide to go through with the deal, make sure that you have some written proof that the tenant accepted the house and was well aware of the foundation problems.
Also, even though this tenant says she wants to buy the house, you still have to think about what happens if she doesn’t and moves out. That is where your foundation problems really come into play.
I don’t mean to be negative, but I looked at a lot of houses in OKC that had foundation cracking. It may be nothing more than a little settling or it could be a big stop sign