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Calvin Spike
  • Investor
  • Pittsburgh, PA
12
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Complex Strategy Question Regarding Specific Scenario

Calvin Spike
  • Investor
  • Pittsburgh, PA
Posted

Hey guys! So I purchased a 4 unit owner occupied multi family property going on 7 months ago. I ended up waiving an inspection per seller request, due to my offer, I did however get an FHA inspection. Since then I've had countless problems arise, which has made me question the quality of the FHA inspection. Recently Ive had an issue with the porch roof having some fleshing seal issues, as well as some water seeping in through the base of the basement walls in a certain area.
This is a building from 1910 in the Pittsburgh area, cash flowing around $300/ month currently with me living in one of the units. I don't anticipate the roof fleshing to ve a very expensive fix, however I'm planning on getting a French drain and sump pump put in the basement at the very least.

 For more context I am 21 years old, this is my first property. I am currently saving for my second property, where I am quite possibly moving to a different state a year from now and hoping to get another owner occupied property. 

I have no intentions of selling this property, however recent issues have certainly been disheartening. My big question is, in my shoes what would you guys do. Continue to give the property the necessary fixes as they come up, looking at around $10k with the current issues, which would deplete half of my reserves. Should I even consider the possibility of selling, maybe a year from now once moving into the next place (will have only owned for 1.5 years)? Would it pay to get a proper inspection on the property to see what needs fixed and updated when, and get a good understanding of all that? Are there other creative routes I'm not considering such as possibly getting a 0 interest credit card, doing the necessary rehab, then attempting to refinance? 

Any help/advice would be greatly appreciated! Thank you!

Most Popular Reply

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Drew Sygit
  • Property Manager
  • Royal Oak, MI
8,641
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Drew Sygit
  • Property Manager
  • Royal Oak, MI
Replied
Quote from @Calvin Spike:

Hey guys! So I purchased a 4 unit owner occupied multi family property going on 7 months ago. I ended up waiving an inspection per seller request, due to my offer, I did however get an FHA inspection. Since then I've had countless problems arise, which has made me question the quality of the FHA inspection. Recently Ive had an issue with the porch roof having some fleshing seal issues, as well as some water seeping in through the base of the basement walls in a certain area.
This is a building from 1910 in the Pittsburgh area, cash flowing around $300/ month currently with me living in one of the units. I don't anticipate the roof fleshing to ve a very expensive fix, however I'm planning on getting a French drain and sump pump put in the basement at the very least.

 For more context I am 21 years old, this is my first property. I am currently saving for my second property, where I am quite possibly moving to a different state a year from now and hoping to get another owner occupied property. 

I have no intentions of selling this property, however recent issues have certainly been disheartening. My big question is, in my shoes what would you guys do. Continue to give the property the necessary fixes as they come up, looking at around $10k with the current issues, which would deplete half of my reserves. Should I even consider the possibility of selling, maybe a year from now once moving into the next place (will have only owned for 1.5 years)? Would it pay to get a proper inspection on the property to see what needs fixed and updated when, and get a good understanding of all that? Are there other creative routes I'm not considering such as possibly getting a 0 interest credit card, doing the necessary rehab, then attempting to refinance? 

Any help/advice would be greatly appreciated! Thank you!


You probably signed a form WARNING you that the FHA inspection was only for the lender's benefit NOT yours.

Would recommend paying for a full-blown inspection now to fully understand 90% of the issues. There's ALWAYS a 10% chance that a hidden problem comes up later:(

Once you understand all the potential repair issues you can make a better decision.

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