All Forum Posts by: Jose Casanova
Jose Casanova has started 2 posts and replied 6 times.
Post: New home - how to get lower interest rate incentive?
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Hey everyone, a new development in the area where I invest, is offering a 5.99% interest rate (conventional loan) and 2% of purchase price in closing costs. Did my rental analysis and it would work fine as a long term rental. The agent just let me know that they cannot offer these rates for investment properties. Are there any ways to get around this? Can I buy it as a vacation rental to get the better interest rate? If so, do I need to hold it for a period of time before I can rent it out? Please let me know if anyone has any thoughts/input. Thanks in advance!
Post: Found great duplex but...foundation has some settlement
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Quote from @Zane Cress:
Hey I just did this fix at a condo complex last year with a sinking corner. Aquaguard was able to drive steel beams into the soil and lift the corner to secure it. Cost about $15k, your job might be cheaper. Either way call them and they can come look at it and give you an estimate for free with a fairly quick turn around. Stress that it is a time sensitive deal.
Thanks Zane!! Appreciate the feedback and the contact.
Post: Found great duplex but...foundation has some settlement
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Quote from @Rick Baggenstoss:
@Jose Casanova. How severe are the unlevel floors? Dangerously unlevel? Will rents go up when you fix it? 1/2" down? You really gotta get an understanding by looking at it.
Which story is settling? First floor kitchen? Can you see it outside or just inside?
By the way, I think settling is a catch all. It implies that the ground underneath dropped because it wasn't compacted when the slab was built, but I doubt that's the case. Do you have a drainage problem outside - near the settled area? Water and/or vermin will tunnel under the slab to cause settlement. Tree roots can do the same. Your approach likely depends on the root cause.
There are a few of approaches to fixing a settled slab. 1. Pick it up - e.g. concrete injection; 2. Pour over - leveling cement; 3. Tear out and fix.
I wouldn't pick a path without understanding the cause. I would also make sure I had a goal to fixing it -- reduce my liability and/or increase rents but not to fix things to perfect because that's the way I like 'em.
A structural engineer is overkill depending on the severity. I'd start with some vendors who will give you some outrageous quotes, but they'll help you understand the root cause and their approach to fixing it.
I didn't notice any low spots where excessive moisture could be accumulating or any big trees in that area (roots issue), so I'm guessing it could be a compaction issue. We are working on getting a local vendor to come and look at the issue. I've heard of helical piers as a potential solution to bring the foundation up to level, but again we'll see what the contractor suggests. They specialize in this type of work.
Lastly, the rents are pretty low right now, so I'm trying to improve the condition of the property and ask for higher rents.
Main concern I have now is whether I'll be able to negotiate a lower price during my due diligence period so I don't end up losing my earnest money.
Thanks again for your input!!
Post: Found great duplex but...foundation has some settlement
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Quote from @Bruce Woodruff:
A settled slab is not uncommon.....It could be just a few grand to repour/tie-in that area. (Sounds like < 100 SF?)
If you can find a good foundation Contr, they may be have a SE in-house or be able to do it without....
Thanks Bruce. That's helpful. My realtor got a copy of an estimate made a couple of months ago (different property) by a local contractor and it was around $14k (bigger area than what I'm looking at fixing). We're going to reach out to the same contractor and see if they can quote the job. Hoping it's under $10k. Thanks again!
Post: Found great duplex but...foundation has some settlement
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Quote from @Cole North:
@Jose Casanova
Yes, the correct way to go about this would be to have a structural engineer (not civil) come out and take a look. They will be able to make a determination of what is causing the settling and what the best path is to remedy it. Where are you located? If you're in a the Phoenix area, I'd be happy to share some potential structural engineers that I regularly work with that may be able to help!
Post: Found great duplex but...foundation has some settlement
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- Votes 0
Hi everyone, first time posting (newbie here). After the original offer fell through, I'm next in line (back up offer). Just came back from seeing the property. Property is good overall, only issue is that the foundation is settling in one of the units. It's a two-story duplex and one of the corners (kitchen floor) is settling a couple of inches. It's a concrete slab. Property is about 30 years old so I don't think it will settle anymore, but I'd like to fix it. I guess the proper way to do this is to reach out to a civil engineer, but wanted to know how expensive these repairs might be. Order of magnitude...is it in the $5k - $10k range? $10k-$15k? $20k + just trying to get some idea so I can run my numbers again and negotiate the price again. Appreciate any suggestions on how to proceed. And any potential ranges based on your experience. Thanks in advance!