All Forum Posts by: Sara C.

Having an issue with a past buyer that's making my blood pressure go up. Would love any feedback.

We flipped a house that was a full gut renovation (hoarder, cat house) and sold it last May (pics here). The buyer was nervous about purchasing from a flipper so requested a "contractor warranty" that warrants the improvements we made (not wear and tear; only failure or things not working as they should). Even though I did not want to continue my relationship with this buyer, we agreed to get the deal done. 

Flash forward to now. They have a very slow leak in their downstairs ceiling and can't identify the source (it's a 2 story townhome). Our realtor team is acting as the mediator between us and he believes it's condensation from the ductwork, which is in-between floors. The HVAC was newer and was one of the few things we didn't replace during this renovation (we did have it inspected). Both my realtor and the buyer (now homeowner) are telling me we "SHOULD" have insulated the ductwork during the renovation. 

I was not aware of that, and it could very well be true, but because this was not something we altered during the renovation, I don't feel it's our responsibility to address it now, after the home is sold. We were never asked about the ductwork prior to sale. 

I certainly don't want to get into a big project of tearing out the ceiling drywall and insulating it now. I also don't feel that we should be held responsible for identifying the source of the leak. If it turns out to be indeed an issue with the work we performed, I would pay to fix it.

Thoughts, ideas, etc? Feels like such a sticky situation to me, but maybe I'm overreacting. 

Any advice is appreciated here. 

Sara

Agree about City of Decatur, if it's walkable to the square. Another suggestion is close to Emory University and Hospital. Lots of parents / family visiting that area need short term housing and there's not a lot hotels near by. Plus it's close to everything!

Welcome Christopher! I'm in the Decatur area but know Gainesville well. Love your story and enthusiasm!  Sounds like you're off to a great start!

@Bernie Liew good for you!! Wish I had started out with house hacking. Those areas you mentioned are amazing but are some of the most expensive parts of the city. Some other ideas are North Decatur, Tucker, Scottdale, Avondale and parts of Clarkston. Those are close to Emory and Agnes Scott so could work for the college set.

Welcome @Alex Quainoo! I got my start by reading  J.Scott's Book on Flipping Houses. 

Hey @Steve Uhlig, I'm not super experienced but I vet BRRRR deals using 70-75% of ARV and then subtract the cost of repairs. That should allow you to cash out most of your initial investment assuming the refinancing appraisal / ARV align.

@Amanda Berg this was a flip so I was able to repay the HELOC when we sold it. Good point above about it being tricky with long term holds. One idea is doing a few flips to get a good, solid nest egg to invest.

Hey Amanda! 

This is exactly what I did to purchase my first deal. I took out a HELOC on my primary home, and used it for the downpayment for traditional financing as well as the renovation costs. It worked out great!

- Sara

I am going to use Robert Kauffman for an addition on a SFH I recently purchased in Tucker. He designed my neighbor's addition and large kitchen renovation and is very reasonably priced.

https://kauffmandesign.com/

We have a flip under contract and the buyer is asking for a "Builder's Warranty." 

Some background: this was a heavy rehab in a townhome community (cat/hoarder house) that involved taking it down to the studs and rebuilding from there. But it's not new construction; it was built in 1974.

I'm familiar with home warranties and would be fine with that, but I can't find any information (or cost) for Builder Warranties. 

Any insights or recommendations?

Thank you!!

Sara