dpa789kd said: drew2money said: dpa789kd said: henry33 said: dpa789kd said: drew2money said: rufruf44 said: dpa789kd said: On the inspection, it may vary by area, but here HUD does a PCR or Property Condition Report before it's listed. An inspector does a basic test of the electrical/plumbing/roof/HVAC/etc... and lists this on the MLS. They pressurize the lines and say it did or didn't hold, hook a generator up and test circuits, visibly inspect what they can. If there are any repairs they spot, like the one we are purchasing which has a bad water heater and needs sheet rock replaced, they will escrow in the estimated repair costs.
I've looked at/ worked on enough houses that I'm confident an inspection isn't going to find anything that would make me walk away from the deal, but if you have a case where you think it might I would just offer a small earnest deposit in case you need to walk. Good idea considering deposit is forfeited if you back out from HUD transaction, regardless of reason.On the other hand, I found their PCR are pretty decent and representative of the house's condition..... at least in these neck of the woods.
Their reports are worth about as much as the paper it's printed on. Based on what? They cost the buyer nothing and in my area do a good job of providing a basic inspection of possible issues. I wouldn't use them as my only inspection but they can be helpful.
Based on actually looking at the house. They miss tons of stuff all the time. It's no substitute for an inspection, it could be considered a basic disclosure of obvious stuff, but there's always tons of other stuff that aren't as obvious until you actually do an inspection. I never said it should be used as your inspection, only that it can be helpful when you look at it. I wouldn't use it or suggest using it as the end all inspection report, but I would argue that it is worth more than "the paper it's printed on". The reports I've seen are accurate and beneficial, I still do my own inspection however. They're not meant to be a full inspection, only an inspection/test of the major components of the house. A lot of time they don't test major components, like gas furnace, as gas is off, like water pressure if water is off...which is most of the time, AC check doesn't mean anything if it's not hot outside....Its a waste of time. I would rather them give me an allowance to hire my own inspector. And there is no guarantee or anything. If they said the gas furnace worked, but didn't, you have absolutely no recourse. Again, worth about as much as the paper it's printed on....at least in NC.... Momma always said foreclosures are like a box of chocolates...you never know what your are gonna get.... Again, I never said I would use it as my full inspection. In my area they do test most major components. Full pressure tests are done on plumbing, generator hooked to electrical panel and all circuits tested, drains tested, furnace tested, etc. AC is a relatively cheap fix if it doesn't end up working. To me it's worth seeing the report because here anyway, anything they find that doesn't work is credited at closing. We got a $500 credit for about $50 in drywall repair that I knew would have to be fixed on one, a $1,100 credit on another because plumbing didn't hold pressure. In that case I spent about 4 hours and maybe $100 to fix. If we hired an inspector they're not going to give me any concessions on what he finds plus I'm out $500 from the start, so to me they are a benefit. They must vary by area. I think you're about to beat my record.
MeraNamJoker said: JaxFL said: you said you were doing a 1031 exchange.
oh.. i did some googling. here is what i found.. looks like it is 2 years If you want to use the property you swapped for as your new second or even primary home, you can’t move in right away. In 2008 the IRS set forth a safe harbor rule under which it said it would not challenge whether a replacement dwelling qualified as investment property for purposes of a 1031. To meet that safe harbor, in each of the two 12-month periods immediately after the exchange: (1) you must rent the dwelling unit to another person for a fair rental for 14 days or more; and (2) your own personal use of the dwelling unit cannot exceed the greater of 14 days or 10% of the number of days during the 12-month period that the dwelling unit is rented at a fair rental.
Makes sense, goes with the 2 out of last 5 when you convert to a rental and then sell, recording sale as primary.
Bizatch said: I just had a tenant pay me December and January rent in one check. I've cashed the check. Do I report the January advanced payment on my 2013 taxes or 2014? Assuming you are using the cash accounting method, yes you report it in 2013.
UDM328i said: This is awesome. Thank you. How much down payment do I need to have to buy a small 4-unit apartment? I found one here in my city selling for $350k. For conventional 30 year fixed loans, I believe 4 units requires 25% down. Ask your banker.
3 months in and my tenants got a puppy. Their notice to me was a copy of their renter's insurance (the lease says it's required for dogs). The lease however says pets require prior written approval from landlord and may be subject to an additional fee. They already have 2 cats, which I had waived the monthly fee for and instead just charged a large refundable deposit. I'm not fond of another pet, even if they said it's crate trained. What's the forum opinion- charge a monthly fee, even more deposit?
I charge $200 per pet, one time fee. My lease has provision for unapproved pets...Pet fee is higher and a daily charge until approved. I do not allow puppies... all 1+ yrs of age. FYI,you should require spade and neutering, esp with cats. They can cause damage.
mcb247 said: 3 months in and my tenants got a puppy. Their notice to me was a copy of their renter's insurance (the lease says it's required for dogs). The lease however says pets require prior written approval from landlord and may be subject to an additional fee. They already have 2 cats, which I had waived the monthly fee for and instead just charged a large refundable deposit. I'm not fond of another pet, even if they said it's crate trained. What's the forum opinion- charge a monthly fee, even more deposit? it sounds like they are hoping the puppy and you both learn to roll over.
most important is that they understand that they can't just do whatever the F they feel like doing. at a minimum, charge an additional deposit and meet the animal. what breed is it? puppies are horrible for apartments - i dont allow them period.
how "large" was the refundable pet deposit? i am actually not vehemently against that approach...it kinda seems most fair...and really, your interests are FAR more well-protected than with a one-time fee.
blueiedgod said: UDM328i said: This is awesome. Thank you. How much down payment do I need to have to buy a small 4-unit apartment? I found one here in my city selling for $350k.
$87,500 down payment, $10,000 - $15,000 for closing = $100,000 needed upfront.
There are still lender out there that requires only 20% down for investment properties. But $100,000 is a good estimate, because there will always be something you need to repair when you first get in. Also, it serves as a good buffer (required by lender) while you are looking for tenants.
holla said: For you guys who buy with all cash: how do you arrange inspection, title insurance, and representation during closing?
Everything is pretty much the same except you don't have a mortgage broker. You also wouldn't have an appraisal, just a home inspection which could be set up by the listing agent assuming it's not a FSBO. Then it's up to you as the buyer to find a home inspector. You'd also get a real estate attorney that would do the representation and you also buy the title insurance from the real estate attorney. You might be able to negotiate a lower fee with the attorney/title company if you don't have a mortgage because there's a lot less paperwork.
solarUS said: it sounds like they are hoping the puppy and you both learn to roll over. Ha, nice one... I ended up telling them it requires an additional deposit, no more pets, and they were cool. Lease does states pets must be spayed/neutered. Thanks for the advice.
mcb247 said: solarUS said: it sounds like they are hoping the puppy and you both learn to roll over. Ha, nice one... I ended up telling them it requires an additional deposit, no more pets, and they were cool. Lease does states pets must be spayed/neutered. Thanks for the advice.
As I've mentioned many times before, depending on the state, pet deposits may be illegal, you just have to look up your state law. Only way around it is to charge more in my state, it's not discrimination because pets aren't a protected class. I don't really allow dogs though because they tend to bark and your bad tenants that sneak in a dog will end up driving your good tenants out. The good tenants won't complain, they'll just move out when their lease is up. It's probably why tenants have a hard time finding places that will allow dogs.
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