All Forum Posts by: Edilson Gomes

Quote from @Ken M.:

Quote from @Edilson Gomes:

Hi all, 

Found an older home and really like the location, style and yard. It checks all the boxes for what I was looking for and I think it has a lot of potential. I am in the NE so older homes are common. My offer was accepted at about 500K which was just a few thousands dollars below asking price. This was higher than I wanted because the interior needs remodeling but the seller didn't want to budge on the asking price (owner passed away and the kids are selling). The Zillow estimate for the home is around 500k. The inventory in the area is pretty low right now so I like to move forward with the deal if I can but also don't want to screwed. Looking to get some advise on how serious these issues seem to educate myself before speaking with my realtor and the seller's agent. Should consult with some contractors before proceeding ?  Should I ask the seller to fix the issues or offer concessions? What if they refuse? TIA

Basement 
Evidence of water penetration and dampness noted at time of inspection. Spalling mortar observed on foundation. Foundation has been painted, and moisture has been trapped behind paint causing it to crack / peel. Also, observed water stains on foundation. The source and amount of water penetration may not be observable at the time of inspection. Consult the owner for a historical perspective regarding previous water penetration. Installation of sump pump system is not to professional standards. Observed no sump cover, no check valve, no dedicated outlet, substandard discharge line, and pump is improperly discharging into town sewer. Consider installing a proper, permanent sump pump system which should include a proper sump with a cover, a pump, a permanent discharge line with a check valve and a dedicated sump pump outlet.

Plumbing System
Accessible Water Supply Lines:
Corrosion and patina observed on fittings and valves. Anticipate repairs and upgrades. Poorly supported and loose water lines noted. Properly secure lines at regular intervals. Also, unused lines have been left opened with only valve stopping water flow. If valve fails, accidental flooding may occur. Consult a plumber regarding repair, upgrade, scope of work, and associated costs.

Accessible Drain/Waste Lines:
Type: Cast Iron, Copper
Please note: Cast iron waste lines have been painted over. This hides true condition of waste pipe. Further evaluation is recommended. There was corrosion and rust on accessible waste lines. Monitor for leaks and anticipate future upgrade.

Central Heating and Cooling
Condensate Components
Components: Gravity Drain Line, Condensate Pump,
Secondary Drain Line . Observed leak in condensate. Repair / replace where needed.

2nd Floor Back Bedroom
Wall Type: Plaster
Water stained wall areas observed. Consult seller for history. This, most likely, occurred prior to installation of new roof (replaced in 2014 and received A/B rating.) Further investigation is recommended. Further evaluation may reveal concealed damage and other related water penetration issues.

Garage (detached)
Moss/Lichen build up observed on roof. Roof surface needs replacement.

.
Your comment "The Zillow estimate for the home is around 500k."

A Zillow estimate is an average of the recent sales in the area regardless of condition and typically assume the house is MLS ready. That means "kept up". It sounds like you bought something less than "kept up".

Everything can be fixed for a price. Water leaks are the most serious to me. I didn't see where you mentioned if the water lines are lead, galvanized iron or copper. I would replace all lines with copper. I didn't see what electrical but I would replace with 200amp copper romex lines. I don't like aluminum wiring or knob & tube. The electrical uses from 90 years ago are very different from todays usage.

If the walls and attic are not insulated, I'd do that for sure.

I've done a bunch of houses built in 1900 - 1920. 

The intake pipes are copper. The majority of the valves were rusted so they will need to be replaced. The inspector gave them a C/D rating so I will need to replace them if the deal goes through. 
We didn’t see any knob and tube wiring (hopefully nothing inside of the walls). It was updated to romex with a 100 amp breaker. 
Makes sense that the Zillow estimate are more for a “defect free” home (excluding minor cosmetic items of course). Hopefully the seller realizes this and we can agree on a fair price or I might walk out of the deal. I already felt as if I was overpaying without the issues. 

Quote from @Marcus Auerbach:

Ideally, your agent can walk you through the report, because he has seen the property. The issues sound familiar, we have a lot of 100 year old homes in Milwaukee (and I have been rehabbing many of them for over 15 years).

Basement:
Very typical for a house of that vintage. 90% of all dampness in basement walls comes from poor surface water management. Overflowing clogged gutters, downspouts, negative grading. People don't understand the purpose and importance of a gutter system, just drive around and look. Most old basements look like this (BTW you are looking at the basement wall, you can't see the foundation, that is what the basement wall is sitting on top of.) The house was built before sump pumps where a thing, but it certainly does not hurt to have one. A quality sump pump is $250, a check valve $10, sump pump cover $30... The municipality does not want you dumping rain water into their sewer system, so you really should discharge into the yard (far enough from the house). And get a dehumidifier.

Plumbing
Par for the course, it's an old house. The lines have been unsecured since forever... that is really not an issue. Budget for a day of labor and $500 in materials. I assume it's galvanized pipeing. We typically replace it all with pex and be done with it for the next 50 years. Cast iron pipes can fail, sometimes they crack like a saussage you cooked too hot or a slow leak due to corrosion, either way, replace a section with PVC as needed. Pretty standard for an old house.

HVAC:
If that is the biggest issue, congrats! Would not hurt to replace the condensate line, they tend to fill with algae. Budget $10 for materials ;-)

Plaster:
Sounds about right with the old roof. Congrats on the newer roof, that is money in the bank.

Garage roof:
In my area I'd budget about $3,000 for a new garage roof. If the garage does not have proper gutters, not a bad idea to install.

If this is all there is on a 90 year old house you found a really good one! Regardless I would try to negotiate and hit them up for a closing cost credit. I would not trust a seller with repairs, better you take the time and have it done the right way after closing without a rush-job premium.

I typically send the inspection report to the seller and tell the other agent that my buyer is VERY concerned. Then wait for 2 days before sending a list of 5 or 6 bullet points of issues with estimated repair cost (maybe a little on the high side) and ask for a closing cost credit (check with your lender how much max you can receive, you are probably limited to actuals). If they don't go for it, ask for half. If they call your bluff, don't take it personally and close the deal. This is pretty minimal for a 90 year old house!

This is incredibly useful and reassuring! Thank you for the thorough reply and feedback. Much appreciated. 

Hi all, 

Found an older home and really like the location, style and yard. It checks all the boxes for what I was looking for and I think it has a lot of potential. I am in the NE so older homes are common. My offer was accepted at about 500K which was just a few thousands dollars below asking price. This was higher than I wanted because the interior needs remodeling but the seller didn't want to budge on the asking price (owner passed away and the kids are selling). The Zillow estimate for the home is around 500k. The inventory in the area is pretty low right now so I like to move forward with the deal if I can but also don't want to screwed. Looking to get some advise on how serious these issues seem to educate myself before speaking with my realtor and the seller's agent. Should consult with some contractors before proceeding ?  Should I ask the seller to fix the issues or offer concessions? What if they refuse? TIA

Basement 
Evidence of water penetration and dampness noted at time of inspection. Spalling mortar observed on foundation. Foundation has been painted, and moisture has been trapped behind paint causing it to crack / peel. Also, observed water stains on foundation. The source and amount of water penetration may not be observable at the time of inspection. Consult the owner for a historical perspective regarding previous water penetration. Installation of sump pump system is not to professional standards. Observed no sump cover, no check valve, no dedicated outlet, substandard discharge line, and pump is improperly discharging into town sewer. Consider installing a proper, permanent sump pump system which should include a proper sump with a cover, a pump, a permanent discharge line with a check valve and a dedicated sump pump outlet.

Plumbing System
Accessible Water Supply Lines:
Corrosion and patina observed on fittings and valves. Anticipate repairs and upgrades. Poorly supported and loose water lines noted. Properly secure lines at regular intervals. Also, unused lines have been left opened with only valve stopping water flow. If valve fails, accidental flooding may occur. Consult a plumber regarding repair, upgrade, scope of work, and associated costs.

Accessible Drain/Waste Lines:
Type: Cast Iron, Copper
Please note: Cast iron waste lines have been painted over. This hides true condition of waste pipe. Further evaluation is recommended. There was corrosion and rust on accessible waste lines. Monitor for leaks and anticipate future upgrade.

Central Heating and Cooling
Condensate Components
Components: Gravity Drain Line, Condensate Pump,
Secondary Drain Line . Observed leak in condensate. Repair / replace where needed.

2nd Floor Back Bedroom
Wall Type: Plaster
Water stained wall areas observed. Consult seller for history. This, most likely, occurred prior to installation of new roof (replaced in 2014 and received A/B rating.) Further investigation is recommended. Further evaluation may reveal concealed damage and other related water penetration issues.

Garage (detached)
Moss/Lichen build up observed on roof. Roof surface needs replacement.

Hi all, 

I am a new landlord and had some inherited tenants that left me with a mess to deal with and lots of unpaid rent. 

Long story short, I have fixed the apartment up nicely and looking to see how people market their units for rent and what process you take for the initial screening and background check. Is there a website you recommend for the background check, application, etc? I will appreciate any tips. Thank you in advance. 

Hi all, 

I started an eviction process in September using a lawyer and I finally got the inherited tenants out last week. I knew they would try to make the process as complicated as they could and take advantage of MA laws and that’s exactly what they did. At the end I got even more screwed than I thought and trying to see the best way to recoup some of the loss. 

Long story short, they stopped paying rent since I issued the eviction and in mediation I was issued a money judgment of approximately $4200 against them. They moved out but didn’t tell me anything and left all their old stuff behind. I had to use an execution to move their stuff out of the apartment and now just received a $2500 bill from the moving company to legally move their junk (literally) to the storage and 3 months storage fee. On top of all of this, I still have to pay the attorney for the eviction process and the constable’s fee. I’m a relative new property owner and this is the first time dealing with this very frustrating process so looking for some advice.

What would be the best way to try to recoup some of the expenses? 
Should I continue to use the attorney and will the process of trying to collect the money cost me more than it will be worth? 
They were supposed to leave the apartment in “broom swept” condition and didn’t. Can I sue them for the moving expenses? 

Would appreciate any and all advice on how to proceed. Thank you.