I am a college student looking to do my first deal. I currently have a duplex that I like (cash flow around 200 a month after deducting 5% vacancy, insurance, taxes, and 15% of monthly estimated rent for CapEx and Repairs). The duplex is in good shape, outside of some slightly uneven floors caused by termite damage in the crawlspace.
Currently, the seller is willing to fix the problem regarding the termite damage and the flooring, so if I offer it would be contingent on that being fully repaired and approving of the repair.
I am looking for any advice regarding this issue. Are there any specific things I should be sure to state in the contingent offer? Would anyone advise staying away from this deal (Example if fixing the uneven floors could lead to eventual cracks in walls due to shifting of the foundation)?
Any response or stories from those with similar experiences would be much appreciated!
@Trevor Dominique as long as you have a home inspector or contractor look over the repair prior to the seller getting it done and giving you their opinion on how the work can be done I think you should be fine. Also have your home inspector look over the rest of the home closely for any other damage. Make sure the repair is done correctly or get a credit from the seller after you get some estimates and then you can have the repair done the way you want it and by whom you want to hire
Obviously if there is termite damage in one location, there is probably other spots too..... make sure you get a very thorough inspection and have a qualified pest inspection too.
I personally prefer to get quotes to fix stuff and then get a credit and have the work done by myself...... I hate having someone oversee and do the work for a property that they will have no vested interest in after the work is done....the tendency is to get the cheapest, quickest cosmetic work done as possible when you let the seller do it..... they don't give a sh$t what happens after they don't own it anymore, they just want to save themselves $$
Definitely get a licensed pest control specialist out there to check for more damage and for current infestation. Are they termites or carpenter ants? Ask for termite cert from owner--if they can't provide one, consider having a treatment done.
Fixing rotted floor joists is fairly straight forward, however I agree with @Ned Jackson that you want the credit and get the work done by your own contractors--get a few bids before closing.
If the floor joists, sill plate or rim joists have been damaged and you are afraid of cracking walls, etc, you can use expanding steel lolly columns. After wood has been sistered or replaced, install the columns on a concrete pad, then every week twist up just a bit. Over the course of a month or two, you should be back at level, and the slow raising will keep cracks to a minimum.
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