Has anyone dealt with foundation problems and a host of other problems( no HVAC etc…). I found a house with the below description. Its listed at 64,900 but I dont know how to determine the cost of repairs.
"Oversize lot, over size house for the area. Needs repairs, to be sold as is, has foundation and roof issues–no reports on file. Plumbing and electrical items to fix. Proof of funds req’d, special seller rider on ntreis. Lots of space, portion of attic converted to living space. "
This house looks like it is a total tear down, but I would like to know if can it be turned around. This isn’t alot of information, but like to get some feed back.
Since it’s listed, go look at the house, and bring a contractor with you to get some estimates.
I would have a structural engineer come look at the foundation issues because that could really blow a budget.
I just had a bowing basement wall fixed. They installed a few steel I-beams to prevent the wall from moving anymore. If I ever decide to replace the driveway I would dig it out and then straighten the wall. It cost me 2200 to have the I-beams installed, to replace the driveway and straighten the wall would have been around 10K.
Won’t work, he is in Japan.
I really think you need to wait until you’re back in the states to do these deals. You’re trying to go by what someone else is telling you and pics, very dangerous. You’re also trying to buy in markets you don’t even know, strike 2. You’re setting yourself up to get burned bigtime in my opinion. I think you need to park the funds you have saved up into a high interest account and learn what you can between now and the time you move back to the states. Once you get back learn your local market and start investing there.
This is an extremely difficult situation to evaluate. No HVAC and plumbing electrical foundation and roofing issues? That could easily cost more than a brand new house would be worth. Tearing down and rebuilding could set you up for all sorts of expenses, depending upon where the property is located. Many assessments can be locally controlled, like hooking up to the sewer, for example. If you do a remodel, you might be able to tie remodel construction into the sewer, have the place inspected, and your done. If you completely tear down, you may be required to pay $40,000 (one example I heard) to the county as a new construction supplemental tax. Everyone can stick you with these kinds of fees from the local schools to utilities.
In my experience, home inspections aren't worth the paper they're printed on, this is a case that calls for a licensed general contractor that you can trust, and if you aren't going to oversee this project directly, you need to trust your contractor a lot!
I believe that the most common mistake that people make is underestimating how long constrution projects are going to take, and how much they are going to cost.
If your strategy is buy and hold, you don't want to be in the wrong part of town. I think you could find excellent deals in areas where crime and gang violence is rampant, but in the end, you will be throwing good money after a bad deal.
I have seen deals that seem to good to be true in areas like across the street from an old air force base. Simply being in the chain of title of a place like this can make you vulnerable to be held responsible for clean up projects mandated by the environmental protection agency.
Whether the property can rent or whether it will apprectiate is largely contingent upon the local economy.
Subprime loans make up 22% of California's total outstanding mortgage loans, and the share of subprime loans considered delinquent is 10.9%.
In contrast, the delinquency rates in Michigan and Ohio are 21.08% and 16.35% respectively, which are among the highest in the country, despite the fact that subprime loans make up ony 3% of the total outstanding mortgage loans in these areas.
Michigan's jobless rate stands at 6.6%. California's jobless rate is 4.8%.
Some analysts maintain that if the unemployment rate in California jumps, that all the bodies will float to the surface, while others maintain that recent huge equity runups recently will offer homeowners the option of refinancing at a fixed interest rate, thereby preventing a large fall in home values.
Other areas that might present a problem are Louisiana and Mississippi, which are still experiencing depressed economic conditions following Hurriciane Katrina.
My point is this: I think it's great that your trying to get some feedback on a real estate forum, but a lot of homework needs to be done with regard to taxes, demographics, local zoning ordinances and building codes, the economy, then finally, the deal itself.
I would buy this property sight unseen if it were in La Jolla or Lower Manhattan, but it would have to come with a living room full of bricks of gold from Fort Knox before I would buy it in Detroit.
It depends on you, but my rule of thumb is that I will only take one major system (roof, foundation, HVAC, etc) but if it is at 2 or more I pass. It sounds like you have roof and foundation that is 2 in my book. I would walk.
I will tell you my story I have a house for sale same price but everything has been rehabed on it since April of 2002 aprasial says it is worth 72,500 two years ago. I had a buyer he brought with him TWO building inspectors.
On the report the building inspectors out right LIED on a lot of stuff. One was they said we had no sump pump and we do another thing is they said we needed braced on the oak joists when they are set in brick
Then they said we had foundation problems. We had two days to find someone to inspect the foundation and agree on fixing it. I got on the phone and pleaded with about 22 companies and engineers to come and see the house.
Finally I got three men willing to come and look and none of them said the foundation was bad. The most one would say is that the back of the house (a built on room) needed to be retuckpointed. because it looked bad. But he didn’t do that kinda work only thing he could do for $4,000 is tear it out and replace it with concert block. We agreed with that. But the inspectors would not agree and told the buyer that would cost 20,000
He believed them and he backed out on the deal.
I have never had dealing with building inspectors in my life and I am 60 years old but from what I can see from the ones he had they are liers and have no idea what they are talking about in a few cases. My husband and I found at least 10 things on his report that were out and out lies.