All Forum Posts by: John C.

I am interested in duplexes in the Hampton Roads area.  I regularly see listings for duplexes in South Norfolk that look attractive on a price-to-rent basis, although maybe a little rough in terms of condition and area.  

I would love to get some insight from locals about this area.  I know about flood insurance, but what else should I watch out for? 

Also, what's your take on prospects for improvement? Some of these duplexes are pretty close to relatively nice new construction.  Maybe that signals a turn, or maybe it's just the usual block-by-block thing that all cities have going on.

BPers:

I have been presented with a property management contract that requires me to hold the manager harmless for all sorts of things, including fair housing violations.  At first glance, this vitiates much of the benefit of having a property manager.

I'm interested in others' experiences with indemnification and property management, especially:

1) have you had any luck getting a property manager to accept liability for their own work? It would be helpful to know whether this is going to be an issue with any property manager or if I've just got one with a very aggressive position on this.

2) if you were the target of a lawsuit or action by regulators and your contract with your PM required you to indemnify him/her, how did that play out?

I especially welcome answers from investors with properties located in Virginia.

John C. 

I'm a new investor in Virginia interested in single-family rentals.

I would like to make an offer with an inspection contingency triggered if repairs exceed a certain amount.  For example, the contingency occurs when repairs are greater than or equal to $5,000.  

The way I would like this to work is (upon acceptance of the offer) I have an inspection performed.  If it comes back with minor repairs obviously under the threshold, I buy the property (assuming other contingencies don't occur, etc).  If the inspector uncovers e.g. serious foundation problems, then I could walk (and perhaps make a second, lower offer in view of the problems discovered).  

The amount of repairs would be determined by estimate from a contractor with the appropriate license to do the work.  I would engage the contractor and obtain the estimate.

The goal here is to create a below-asking price offer that will be accepted.  The houses I'm interested in tend to go at or slightly below asking price before accounting for repairs and closing costs.   I want to offer less than asking price, but sweeten the pot by letting the buyer know that I'm not going to push hard on repairs unless there's something really wrong with the house.  For me, I could get a discount on a house that's dated but functionally sound.

Is it possible to do this using the standard VAR forms? What's the proper verbiage?

Thanks in advance!