Hurdles with my first deal and where to go from here?

2 Replies

My twin brother and I found an off market property via direct mail that we would like to Househack. It’s currently a 3b2b with an extra room that we can easily turn into a fourth bedroom. We have not signed anything.

The issue is with the garage. It burnt down a few years ago and the seller is having issues with the rebuild. The city has already signed off on her plans and permit but the contractor we set up for her, and already broke ground, has disappeared.

We first met her in May and still believe in the property. But her lack of effort to find a contractor and now the problem with the current contractor has been discouraging. I’m a co-signer on the loan and need to close escrow by the end of the year.

Do we buy the property, include her insurance money in the purchase, and handle the garage after?

Or do we continue with her to find a new contractor and try to get this all done in the next couple months?

Thanks

Hey @Katie Cool , welcome to the BP community!

Personally, I would put the property under contract at a price that makes sense for you with a garage rebuild factored in. You will definitely want a solid contractor (not one that will run off) to check it out before hand for a bid. Maybe even get a few contractors out there if you do not already have one. Sounds like the owner is sick of dealing with it so use this as leverage to get a sweet deal. Keep working with her if she's stuck on a price. 

The only issue you might run across is with the insurance company being willing to transfer payout to the new owner. However, if she has already received the money you can either include that in the contract or negotiate a lower price and let her keep it, whichever works best for both parties. 

Hope this helps a bit. Please feel free to message me anytime if you have other questions or just want to chat!

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