All Forum Posts by: Edward Burns

I am sure the law varies state by state. But on a house I am closing on in the morning, I had to sign a disclosure with the agent stating that I understood (even though he was not affiliated with listing agent) that he represented and was being paid by the seller.

That does not mean that agent is out to screw the buyer or is not helpful in explaining and cutting through the red-tape and hassles associated with buying RE. Just indicates he has no obligation to you to make sure you get the best price.

This is a common misperception, a real estate agent always represents the seller, whether or not he/she is the selling or buying agent. They all get paid by the seller and usually with a percentage of the sales price. The only exception is a buyer can and though rarely does hire a agent specifically to represent them, paid by funds to find, negotiate and assist in the buying of property.

Approach the group of kids just to meet the neighbors. Explain to them that just bought such and such and it appears someone has breaking in ask them nicely to call you if they see anything strange going on and mention that you ask some of the neighbors to do the same. Keep it friendly, non-accusatory and try to get them on your side. Doesn't hurt and might solve the problem.

Before my first venture, I spent hours and hours analyzing deals, evaluating every what-if angle imaginable and accomplished nothing but creating anxiety and allowing profitable deals slip through my fingers. Then I finally took the attitude that you can't get a hit if you don't swing the bat.

So know I run the figures, calculate the repair costs and my desired return. Since I try to due most of the work myself (keeps me busy), I do not do many deals (maybe 1 every 1-2 years), but I'm not afraid to take a chance. Be picky, be careful, be willing to make low-ball offers (who cares if you p*** off the seller or for that matter you re agent. This is a business and in business good guys finish last and some one in always waiting in the wings to do the same to you. Doesn't you have to be callous I contribute a lot of money to charities, and churches).

I would just clean them up and maybe add some inexpensive door handles and drawer pulls. You are on a tight budget and it is intended as a rental so look for quick cosmetic fixes.

As far as flooring Laminates do not hold up that well to moisture (ie water spills, milk spills etc.) Look at linoleum or inexpensive tile.

If your maximum price is $21K go with an offer of $19K. Worst that happens is they say NO.

I would probably remove and replace the damaged section of the lumber and reinforce the butt joint. IE cut away the damaged portion plus a few inches and splice in new material, caulk any exterior joint. Also bottom picture indicates lower siding board might have some damage along bottom that should be addressed. Hard to tell because the dirt on siding seems to be brushed away from area.

Sorry I forgot a few things. Seeing you are planning to replace the Hot Water and furnace check with your local utilities to see if any quasi-governmental rebates are available. In my area No Illinois, you can buy a 67% efficient gas HW heater for about the same as a normal one, yet the 67% efficient model the gas company will provide $100 rebate. Similiarly they will provide rebates on HE Heating systems (ie 95%+ effcent). Electric companies also have rebate programs. The high efficiency status might prove an advantage when selling at no cost to you.

In addition, some manufacturers have rebates on appliance packages (ie buying 2,3,or 4 made by the same manufacturer).

What will the house be worth fixed up? You state the value of comps in similar condition which is good for buying but not for selling a revamped house.

Assuming you have $41K to play with (the difference between purchase and avg of comps) you will find that can be burnt through very quickly.
Commission on resale = 7K
New roof = 5-10K
New Paint = 3-4 K
New flooring = 3-5 K
New Furnance = 3-5K
New WH = 1K
Garage Door = 1K
New Kitchen aplliances = 2-3K
Carying Cost = 6K
Does not include other needed repairs, and you are already running close to your $41K

As I do not know your area and my prices are ballpark, you may wish to get better numbers before committing to further upgrades.

You can call the IRS and pose them the question. If the answer is you can't take full depreciation just do not identify yourself with your SSN. If they state you can fully depreciate the property ask for their statement in writing and keep on file. That way if a question arises later you are covered.