new to rei - Posted by dawn

Posted by dawn on June 05, 1999 at 21:24:26:

thanks Brian for the feedback. No “fire” over this property, just wondering what an experienced rei would do. I thought the property might be appropriate to flip to a construction co. in town that buys houses in “any condition” --in order to earn a small profit. But the structural repairs are too much for me just starting out.
Thanks again!

new to rei - Posted by dawn

Posted by dawn on June 05, 1999 at 16:43:34:

Hi everybody! I’m new to rei. I have been reading books for years, have been reading on this wonderful site for 2 weeks and feel it’s time to get started making deals.
I have questions?? There is a listed home 3/2/2 in good area for $67,000 agent says will easily sell for 90k after fix up. House has had tenants for 5 years and is dirty and needing repair. Biggest problem is the concrete slab foundation with estimated (by professional) cost of 8k to fix, in addition, plumbing could be effected after leveling the house but no way to tell in advance. Agent says installed crown molding could cover interior cracks. Would this be a property to pursue further? must the foundation be repaired or just disclosed to potential buyer. How does this effect resale? I’m in shock (and not thinking clearly) that I found something below value as the market is hot down here–so any feedback would be greatly appreciated.


Re: new to rei - Posted by B.L. Renfrow

Posted by B.L. Renfrow on June 05, 1999 at 18:32:13:

Not to throw water on your fire - and this MIGHT be a good deal - but foundation problems can be difficult to repair properly, so I’d get a couple of professional opinions, from someone whom you trust with experience in similar repairs. And you’re right about the potential for plumbing problems, which could also prove very expensive to correct. If it were me, unless I was very sure of the numbers, I’d probably pass on this one. Cosmetics are one thing, but major structural repairs usually send me running in a hurry.

Also, make very certain comps support the 90K figure; don’t take the agent’s word for it, as agents tend to inflate comps on occasion.

YES, the foundation problem MUST be disclosed to potential buyers, whether you install crown moldings or not. You might be able to sell as-is; depends on how serious it is.

Also, you don’t mention how you plan to acquire the property and what you intend to do with it. Those factors would also affect whether this is a deal or not.

Good luck…hopefully you’ll get some other opinions here too.

Brian (NY)