Posted by Robert (ID) on December 11, 2000 at 19:36:03:
Their payment is $785. If I can get them to carry part of that payment for the 1st year, it would give me a good cash flow for the first year. If T/B does not exersice his option, I will raise the rent for the 2nd year and see what happens at the end of the 2nd year.
This one stinks - Posted by Robert (ID)
Posted by Robert (ID) on December 10, 2000 at 14:58:25:
I had a seller call me with a 3 year old house that they have lived in for 1.5 years. FMV is $100,000 - $110,000. They are asking $95.000. The problem is that for three years the back bathroom sewer pipe did not have a coupling on it, ($5.00 fix) (FHA did an inspection on the prior to them buying it and they missed it.) they really did not use this bath until they had a baby. The waste has been going into the crawl space for three years. They noticed the smell this summer, they had the sewage pumped out and put in 500#'s of lime, but there is still a slight smell. They moved out several months ago, because of the baby. They don’t want the house any more even if they get the smell out. the owner said it would take about $8,000. to cure the problem totally, remove 4-6 inches of soil from under the house and replace with clean soil, clean the carpets, vents and paint. When I went to look at the house, I could not smell anything, but it was cold outside, I have not went inside yet. They are interested in a lease option.
What would be the best course of action here? Next? or what?
Thanks in advance,
Robert
WHERE’S THE BEEF ? - Posted by Skipp Tracey
Posted by Skipp Tracey on December 10, 2000 at 19:23:57:
This is a deal? NEXT!
Re: This one stinks - Posted by BillW.
Posted by BillW. on December 10, 2000 at 18:28:22:
Where’s the equity? How do you plan to make a profit on this deal?
BillW.
Re: This one stinks - Posted by AnnNC
Posted by AnnNC on December 10, 2000 at 16:42:32:
Just food for thought, as I was reminded of this recent problem: http://www.salisburypost.com/2000dec/120600b.htm
In any event, say the house is worth 100K according to your post, according to the owner, they are asking 95K, but say it will take another 8K to fix? And it’s 3 yrs old, did they buy it from the builder? Couldn’t exactly tell if they were the first owner. Was the house then empty for the other 1.5 yrs? Or was their another owner occupant?
Are they or anyone suing the builder???
Point being, you haven’t been inside, there could be
mold, maybe only the dirt was fixed but the mold, other damp areas that may not have been sealed. Caulking is SO underrated, and often overlooked.
It sounds like a headache, possible potential liability for you, and you are not getting enough discount to take this into consideration the added cleanup and carrying costs during it, Plus, like you said, it’s not summer…
Just saying some clarification would help here, for us and for you.
They moved out, even after all the fix up work and
"no smell", so I’m thinking mold, rotted wood–maybe. Something.
And FHA missed it? Hmmmm. Wonder what the recourse is there?
Makes me wonder if this was a new subdivision and if
anyone else had same problem with that builder? Might be good to find out what else is going on in the neighborhood, as this looks like a new construction problem, not wear and tear, disaster, or very old age rotting or temite sort of thing.
Very interesting, keep us posted!
Let better experience than mine advise on this. Ann
Re: This one stinks - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on December 10, 2000 at 15:39:41:
Robert,
You do not mention how much is owed or how much cash it will take to take over the loan. If they do not want the house you should get this nasty deal for showing up. (it really is not as bad as some might think).
If they are feeling really guilty for this pollution of the environment, well maybe you could let them give you some cash to help with the clean up.
Re: This one stinks - Posted by Robert (ID)
Posted by Robert (ID) on December 11, 2000 at 12:47:42:
I guess I am confused. I have read on several posts where the PacTrust is used and they offer more than FMV at the time, hoping in the future it appreicates. I really don’t understand the PacTrust, don’t have the course. I guess what I am trying to do is help someone out of a stinky problem, but I shouldn’t worry about them, (big problem I have, I like to help people). I am very new to REI, really don’t alot but I am trying.
What I thought I saw was a long term L/O or ST. I am going to ask them for a L/O for a minimum of 5 years for the loan balance, with them paying $185.00 for the first year, so that I can apply that to cleaning up the problem. With all that they have done so far, it has elimated 95% of the smell, (I couldn’t smell anything, but it was cold outside, not freezing, just cold.) I was hoping that I could find a T/B willing to do a L/O for $110,000 with payments @ $900 a month with $200 month credit. Would this be possible?
Thanks,
Robert
Re: This one stinks - Posted by Robert (ID)
Posted by Robert (ID) on December 10, 2000 at 17:40:56:
They owe $95,000. They have owned for 1.5 years, the previous owners say they knew nothing about the leak, as they themselves seldomly used that bathroom. The leak was directly in to the crawl space on to the plastic. They pumped it out & removed the plastic and filled lime, it was around the foundation but not soaking into the wood.
They are suing but I’m not sure who. FHA denies any responsibility.
They move out because they did not want to take any chances with ther newborn.
Yes, it is a new sub-division, do not know of any other problems. I will keep you posted.
Thanks,
Robert
Re: This one stinks - Posted by vic
Posted by vic on December 10, 2000 at 16:11:23:
Use that orange stuff that is advertised on tv.
We bought a house that the owners cat had peed all over the place and it would burn your eyes it smelled so bad, and the orange smelling liqued eliminated the smell.
I doesnt sould like theres much money to be made on the house. but i would ventlate with a fan for a week or two and then put down plastic, and activated charcoal works well too.
Re: This one stinks - Posted by dewCO
Posted by dewCO on December 11, 2000 at 17:21:10:
You still haven’t poted what the current monthly payment is. Will you be making money on this each month. If you are waiting for the come on the back end you need to be making money each month. YOU need to know if the value is there, both the purchase rprice and can you get the amount you want to rent it for, some hopefully you are making money each month.
A long term LO is no fdifferent than a PACTrus except for the benefits the PACTrsut provides over and above the regular LO.
You might ask these folks to escrow some money in case the smell isn’t totally gone by the time you get to hot weather too. IF it’s OK you return it to them.