All Forum Posts by: Dustin Bowman

@Andrew Kubik @Thomas Talbert   @Ryan Kelly @Michael Smythe

Thank you for the replies. I did lock in a decent rate, so that is in my favor. I did get a licensed engineer's evaluation, he suggested that polyurethane foam injections would be a great solution and that failed miserably.  

At this point I can't fathom spending close to $100k in repairs and potentially being right back where I started. Selling now would also be buying at peak and selling at rock bottom or close to it. 

I think the best course of action is to keep renting it out as is. Some risk of foundation causing other issues but I think it's the best of the terrible options.

I am in a bit of a pickle, seeking advice. I purchased a duplex (Austin, TX) at peak market prices in 2022 for $720k. Of course, values have dropped dramatically, and additionally, extreme foundation problems have occurred. The property had foundation work done just prior to the sale but continued having problems, even after I hired a second contractor to correct. Currently, the house looks like a warzone, with huge horizontal cracks, buckling, and crumbling drywall everywhere. Both tenants just moved out.

I just got a bid to correct the foundation the right way by the most reputable company I could find (full underpinning, 60+ piers) ~$65k, plus costs of repairing drywall, paint, vacancy, and new flooring. Probably approaching $100k in total.

My options seem to be sell and pay an additional ~70k out of pocket to the lender (underwater amount) or make the repairs and hope the problem is corrected once and for all. I am very nervous that the foundation is hopeless and I will be back at square one, burning another $100k. I would love to simply walk away but TX is a recourse state for deficiency judgements.

Buying was a blunder and this has been an expensive lesson. I have plenty of capital to go any route, just trying to figure out the best path.

Thanks all for the great answers. I realize the question is vague and that kind of leads me to my main issue. 

I should mention I'm looking ON market, so there's typically a 3 day window between listing and offer deadline. Additionally, some of these properties are leased and there are no showings until an offer is accepted. I really need to be under contract to have time to get estimates, but I need a rough estimate in order make an offer and get under contract. That's the conundrum for me. 

If I'm being realistic, I think going with a GC is the only reasonable option, I don't have time to coordinate.

I've looked at some brrrr opportunities duplex/quads that would need full kitchen/bath remodels, floors, paint, fixtures. 

It's hard to get a sense of what to expect in this white hot Austin market before I get under contract and get estimates. 

Any rough estimates for cost/sq ft? 

What are lead times these days to have this kind of work done?