All Forum Posts by: Kyle J.

Depends. As Jon mentioned, it sounds like these things would need to have been specifically listed in the contract as being included. Were they?

Generally speaking, non-attached items will not be included unless listed/itemized in the contract. Otherwise, you should only expect attached items (i.e. ceiling fans, oven, etc) to be included. Though even those things are routinely removed when the house is a short sale.

I was recently shopping for a used fridge for one of my rentals, and I came across multiple people on Craigslist who were selling appliances (including ovens/ranges) that they told me they removed from their house before the short sale/foreclosure and were now trying to make a few extra bucks on.

It depends on what work needs to be done, and how much work you plan on doing yourself vs hiring out to subcontractors.

I see houses all the time that SEEM to be underpriced. Until you get inside and realize everything has been stripped or damaged, or there's a big huge illegal addition that the City is ordering torn down. Then it doesn't seem so underpriced. You just can't tell enough about a house from a couple exterior photos.

Welcome to BP!

Good luck with that. This is why I don't follow "rules" like this one. Sure, he'll cash flow at a purchase price of $182,500. But is it reasonable, logical or likely that he'll get it for that price? Probably not. You just can't make one rule and try to apply it to all markets/situations/properties/etc.

Just my two cents.

A realtor, a tax attorney, my insurance agent, and a variety of skilled tradesmen/subcontractors in different specialities. That's really all I've needed. Though I suppose it would be nice to have a regular lender to do business with. Presently, I've been using a different one for each transaction.

If I were in your shoes, I'd do the deal.

What is your reason for terminating it?

I assume you'll be making an all cash offer? Because if you're getting a conventional loan the bank is going to require an appraisal. If it is an all cash deal, whether you pay for an appraisal is strictly up to you and how comfortable you feel in your ability to determine the property's value.

The last house I bought was paid for in cash and I chose not to get an appraisal because I felt comfortable with my own determination of the property's value based on the comps in the neighborhood.

You can check the comps for similar sold properties in the neighborhood to come up with an idea of the home's value all on your own.

Here's some things to keep in mind if you decide not to hire an appraiser:

1) The "City's" (by this I assume you mean the county assessor) "full market value" price likely does not reflect a property's current value as it is always based on data that is usually at least over half a year old and will not always reflect unique conditions, upgrades (or downgrades), etc of a home.

2) The seller's asking price for a home is definitely not an accurate basis for determining the home's value to you or anyone else (except maybe the seller himself).

3) Zillow may or may not give you an idea of a home's value. I certainly wouldn't rely solely on a Zillow estimate. I have seen Zillow estimates be very close to the actual value, but I have also seen a Zillow estimate be almost $100k off.

Also, no matter how nice the interior is, you are going to have to factor in all the work that needs to be done to the exterior into whatever value/offer you ultimately come up with. You can also point out to the seller that by not using a realtor he is saving the commission he would have otherwise had to pay.

Lastly, I personally would not pay for any inspections until you have an agreement/accepted offer with the seller. You can always make your offer contingent upon any inspections, and then re-negotiate if something major is discovered. However, I wouldn't want to pay for inspections when you and the seller might never even come to an agreement on price. But if you want to get a FREE estimate for work that you know will need to be done (like the siding) in order for you to accurately determine a price, than I don't see any problem with that.

1-4 unit properties do qualify for FHA loans. Not sure why exactly you would want to own "the most expensive property on the block" though, especially when the "hood is not very desirable".

Also, don't go by the listing agents "projected" rent amounts. They are likely overstated and/or best case scenarios. Do your own research and find out what rents are REALLY going for in that neighborhood for similar properties so you can get a better idea of what to realistically expect.