All Forum Posts by: Edward Burns

Sorry to hear that you have bedbug infestation and I do agree that treating at the same as for termites is the right thing to due. But make sure the two affected tenants realize that their clothing etc need to be treated by them and print out the procedures for them. You want the problem resolved and I hope they do too.

I do not understand why you want to treat for bedbugs if there is no existing problem. Bedbugs treatment does not last long and they are carried in by pets and people. Any treatment for bedbugs is only effective if all clothing and bedding is also treated (usually by placing in a hot drier for a couple hours). If bedbugs are a problem and the clothing etc is not treated you will still have bedbugs. Also the treatment is not like that for termites where the chemical residue stays and is active for years. Check for information on the internet and carefully screen the exterminator.

As far as temporary living expenses, considering motel cost and extra food expenses I would figure $100/night.

Not sure if I understand fully what you are asking.

If the morgage currently has a $50K loan payoff cost and the house is being offered at $78K that is not a short sale. A short sale is when sale price is lower then loan value (thus the bank winds up losing money and therefore has a say in the transaction). If assuming your $50K payoff is correct were to offer $53K (adding 6% realtor fees) and paid all the closing cost then the bank gets paid in full (and thus doesn't enter the negotiations), the current owner walks away with nothing (but his credit indicates the loan paid off) and you get the house.

Find out what the original loan amount was and the date of the loan. Then look up any amortization table and you should be able to find out the payoff amount (assuming the loan was kept current). Add 6% to that figure and see if you are close the 70% FMV of comparable comps in the area (Note same or similar condition), then decide if that price is reasonable from other standpoints, if so keep the bank out of it. As long as the offer is enough to pay off the loan completely IT IS NOT A SHORT SALE.

Bed Bugs are a big nuisance to get rid of. The treatment requires spraying the apartment with an insecticide that requires the residence to be vacated for upto eight hours. In addition all bedding, clothes etc have to cleaned. Then placed in a hot dryer for about 2 hours. Unless this is done you are wasting your time. Just throwing away the bed will not solve the problem. Then the apartment must be rechecked 30 days and possibly retreated. In addition, the cost by the exterminator will be over $500 per treatment.

You can check the Center for Disease Control website for specific information. Which I recommend and would copy the pertinent information and provide to the tenant.

It basically comes down to knowing the end market (i.e. your potential buyer). If you do not know what the buyers are looking for, check other homes that have been rehabbed and are for sale in the area. Or assuming you are working with a realtor tell him/her of your plan and ask them. They should know what sells and what doesn't. Don't make a promise but indicate you would be open to list the house for resale with them after improvements.

Garage doors can be aluminum, fiberglass, some form of thermoplastic or wood. The most effective paint will vary according to the material. As far as color I tend to go with either white or match the color scheme of the house.

While according to your estimates only 50% of the house was damaged, the entire house would have suffered smoke damage and possibly some water damage. The smoke damage will require repainting with a special paint to reduce the lingering smoke smell and may well require removal and replacement of some non-damaged drywall. In addition woodwork and other semi-porous surfaces will require sealing of some form.

Often banks will sell the loans in a group, not individually, so breaking out the amount paid for a specific individual loan would be near impossible.

Hud offers several different catergories, each with there own rules.

With homes sold under the Good Neighbor program, the purchaser must meet certain employment guidelines and training. They must live in the house they buy for 36 months.

Owner Occuppied - The purchaser agrees to move in within 60 days and live there for 1 full year. An individual can only buy under this program once every 2 years

Invester - basically the rest and there no restrictions as to the time you are required to keep the property.

As far as I know there is no limit on the amount of profit you can make on reselling a hud home.

You forgot insurance, I do not know the cost in your area but a policy for replacement value of 146K cost me about $600/yr or $50.00 a month. Also you left no money for repairs (during rental not initial) or vacancies.