Oklahoma City, OK · Member since 2018 · 2 posts · 0 votes
This is Cora. I am using equity from my home to pay cash for a property that is below who most loan minimums. Using a title company to close with the seller will insure clear title; having an inspection before handing over the cash will identify any structural issues or problems. Is there anything else I should do to avoid buying a big problem, or a "lemon"?? THANK YOU!!!!!!
Even an inspection does not guarantee you that the property is "free of issues". You could hire different professional trades and pay them for their time to inspect the property. No one can guarantee what's behind a wall unless you gut it to the studs.
Talk to the neighbors, and see what the neighborhood is like.
Check with the local municipality for any code violations or complains.
Ask 1 or more seasoned investors to walk through the property with you, if they can identify potential issues that you may have missed.
I see this is your first post, Welcome to BP @Cora Kemp-Epps An inspection including wood eating insects and roof should cover you for the most part. There is always some risk. You need to price that risk into your offer.
The bigger issue since you are apparently new at this is how good a deal is this? How well do you know your market? Do the numbers make sense? What is the neighborhood like and which way is it going? To help you in this regard you may want to hire an appraiser.
The fact is real estate is very risky. Nobody likes to say that but it is. They way you protect yourself from that risk is your knowledge. The risk in real estate is inversely proportional to your knowledge.
Ned, thank you so much for your comments. The seller says the roof is 2-3 years old. The price of the property is good as long as the repairs don't create too much unexpected expense, but I'm happy to consider an appraiser. I guess we just do a Quit Claim transaction if the seller agrees to our offer final . Thank you again.