All Forum Posts by: Tanya A.

I have read that when HUD sells a home in need of repairs they will require those repairs be done within 6 months, or they want a certain amount put in escrow to go towards these repairs, if I recall correctly. Is that only for financed deals or does it apply to cash deals as well? Anybody know?

Thanks everyone for the great feedback, especially with regards to getting a contractor out there and contacting the previous owner.  I feel much better about those decisions.  

I am absolutely trying to do due diligence on the historic district part. It's definitely governed by historic board, and I've reached out to them and am waiting to hear back.  I've gone through several minutes from their meetings and it does sound like they're fairly reasonable with approvals for repairs and upgrades on noncontributing properties so far (far greater approvals than denials), but I think I'll also contact some homeowners of the properties in question and ask for their opinion of the experience. My realtor also just sold a home in the district for a client and is going to help me connect with them as well. And I'm going to see if the board has any record of history on the property or previous requests for improvements. I don't know if they keep that sort of thing.

@Greg H. I've read so many of your posts here; thank you for replying.  I felt the pressure test probably could go that way as well - the wood rot also might be as simple as replacing a wood fence on the property which looks to be in very poor shape (that is, of course, if the historic board doesn't demand reclaimed wood from the exact same tree family, year, and location of the original property (yes, I've read that post, haha).  I'm mostly concerned about that foundation. 

There is one issue that's a BIG RED FLAG, however, which I unbelievably forgot to mention in my original post.  The property is on a nonconforming lot.  It's tiny and practically in the back yard of the property behind it.  It has alley access only, and I was deeply concerned about how to get equipment into the area if major repairs ever needed done.  In addition, my realtor just called and informed me that due to the nonconforming characteristics of the property, should 49% of the property be damaged in any way, the city would not authorize a rebuild.  You're left with an empty lot - and I reckon that probably means insurance issues as well. 

Hi, all.  Happy 2018!

I'm looking to bid on a property that is currently 30 days on market. Open to all bidders at this time. The home is uninsured and property disclosure states a failed pressure plumbing test and noting repairs that include plumbing, foundation, and wood rot (very vague/no specifics). The home was built in 1934 and is a 'non-contributing' property in a historic district. I understand as an investor that you lose your earnest money on HUD properties if you bail after an inspection. Also I would like to have a good idea of what exactly needs to be addressed and how much it might cost before even making my bid.

Advice on how to proceed with inspection? I know some companies offer free estimates so I'm wondering if it would be a faux pas to have a company do an estimate while I and the real estate agent are there? Or are there better ways to go about this?

Also, is it illegal or otherwise unwise to contact the previous (not current) home owner and ask about the property? I know who lived in the house before it was foreclosed. 

I am very new as this would be my first investment property. 

Any and all advice appreciated.