Fourplex crisis
This is the worst property situation I've had to date. I'm overwhelmed and not sure what to do. Any helpful advice would be appreciated.
I bought this fourplex in December 2013. On Sunday a tenant reported sewerage back up.
On Monday I sent a plumber. He cleared the blockage and told me there was 'a belly in the lateral line'. The plumbing was working for 24 hours, then the sewerage back up emerged again. City health department became involved and said I needed to move all tenant out immediately. I just relocated the tenants to hotels, which I'm paying for.
I paid someone to clean down the whole area with disinfectant. The health department advised its not to their standards and I need to send another remediation company immediately.
Another plumber went this morning to inspect. Initially he told me $2000 to remove the lateral belly but upon inspection he said he believes its under the carpark and is beyond his capability. He said he thinks it will cost $20,000-$30,000. The property only cost $110,000 to buy. I'm out of the state which makes things difficult.
My head is spinning. I didn't get insurance for the building when I first bought it and was planning to get it under an insurance plan whilst I was in the US this time. Obviously it's too late now so there is no insurance coverage.
Originally posted by @Nat C.:
This is the worst property situation I've had to date. I'm overwhelmed and not sure what to do. Any helpful advice would be appreciated.
I bought this fourplex in December 2013. On Sunday a tenant reported sewerage back up.
On Monday I sent a plumber. He cleared the blockage and told me there was 'a belly in the lateral line'. The plumbing was working for 24 hours, then the sewerage back up emerged again. City health department became involved and said I needed to move all tenant out immediately. I just relocated the tenants to hotels, which I'm paying for.
I paid someone to clean down the whole area with disinfectant. The health department advised its not to their standards and I need to send another remediation company immediately.
Another plumber went this morning to inspect. Initially he told me $2000 to remove the lateral belly but upon inspection he said he believes its under the carpark and is beyond his capability. He said he thinks it will cost $20,000-$30,000. The property only cost $110,000 to buy. I'm out of the state which makes things difficult.
My head is spinning. I didn't get insurance for the building when I first bought it and was planning to get it under an insurance plan whilst I was in the US this time. Obviously it's too late now so there is no insurance coverage.
(1) Don't buy fourplexes generally because they're usually all in "fourplex neighborhoods"
(2) Always obtain 3 estimates on plumbing work that's more than $500
(3) Fix issues as they occur immediately as they will get more expensive if you delay maintenance.
It sounds like the property may have had a plumbing issue prior to you acquiring it. Did you conduct a full inspection, including plumbing lines?
Best of luck.
@Nat C. congratulations. I just finished reading this entire thread. Wow. I am impressed. I just terminated contract on a duplex due to the fact it had sewer line issues. Also it didn't help that the seller wasn't to keen on disclosing the issue.
After having read this I'm more confident in my decision, especially as this would have been my first REI.
Thank you for sharing your story.
Good luck to you.
Originally posted by @Andrew Emery:
@Nat C. congratulations. I just finished reading this entire thread. Wow. I am impressed. I just terminated contract on a duplex due to the fact it had sewer line issues. Also it didn't help that the seller wasn't to keen on disclosing the issue.
After having read this I'm more confident in my decision, especially as this would have been my first REI.
Thank you for sharing your story.
Good luck to you.
Hi Andrew,
That's good that you discovered the problem before closing. Sewer issues can be extremely expensive and cumbersome. You could have been scarred for life if having such a major problem on your first REI!
Originally posted by @Account Closed:
You might have been lucky on the specific properties. However, you did choose to work areas that have action and opportunity. Active markets are way more forgiving. I don't think your market selections are entirely luck. I think you have the appropriate intuition and understanding of the difference between areas like Las Vegas, Miami, Charleston and say......Flint, Buffalo and inner Philly.
It was a no-brainier. I'm from the other side of the world, so it was common sense to invest in cities I had a least heard of.
If you as an American were investing in China, would you be more likely to buy a condo in Nanchang or Shanghai?
@Nat C.I would buy inside the Forbidden City because it's priceless and also because it's foundation is 8 meters deep so there will be no ninja assassins tunneling below, and will never have sewer backup or clogging because they are covered moats so big you can put a thousand water melons down there and it would still drain.
Originally posted by @Sam Leon:
@Nat C.I would buy inside the Forbidden City because it's priceless and also because it's foundation is 8 meters deep so there will be no ninja assassins tunneling below, and will never have sewer backup or clogging because they are covered moats so big you can put a thousand water melons down there and it would still drain.
You are hilarious; I must retract my statement!
If you decide to sue the previous owner, were there tenants in place when you bought it? Did they complain to the previous owner about the plumbing issues? If so that could be a HUGE help to a suit. Good luck.
Wayne Smith, yes.
They are not only willing to testify but they are eager to. They did not like the previous owner and agent.
On the contrary, I bought their son a coat in the window and food parcels when their SS check was suspended.
Nat,
Sorry to hear about what you are going through with your property. Definitely make sure you get a second and third opinion regarding this matter. @Steve Babiak, one of my goals by the end of this year is to find a Tri-plex or Four-plex to house hack and I will make sure I make it a requirement for tenants to have renters insurance and place in my leases limiting our out-of-pocket to pro-rated rent when the unit becomes uninhabitable. Thanks for the advice.