All Forum Posts by: Tom Fidrych

You will want a few foundation repair contractors to take a look at it to diagnose the cause. The house could be built on clay, or perhaps be settling due to poor water management. Have them give you an estimate for repair and negotiate with the seller for either a credit or to have the repair work done. You could also cancel the contract if the needed work seems too extensive.

How are you going to finance it? I don't believe conventional lenders will finance given that 1 side is gutted. 

I have 2 and 6 unit properties in Eugene, OR and they likely decreased 30% from there peak during that time. I was a newbie and It was depressing especially since you didn't know how much lower it would go. My lines of credit were frozen, my w-2 income diminished-basically a full blown liquidity crisis. On the positive, the properties all cash flowed and rents started going up-I didn't understand why at the time but it's clear now. Also, it was surprising how many real estate agents and loan officers inquired about a rental stating that they had been foreclosed upon. These people were highly leveraged likely on adjustable rate mortgages and there was a major rug pull of their income streams.

Major concern, vent it properly asap. I've seen cases where the warm moist air condensed on the underside of the roof sheathing and rotted it and the rafters.

Depending on the condition of the truck, it could certainly make a difference. Keep in mind you may do a lot of driving as an agent(especially in a rural area)and if your truck gets 15 mpg versus a 35 mpg car, you might find that the gas saving alone more than make the monthly payments. 

A true comp is comparing your place to units of similar size and condition. A place in rough shape should rent lower than a place that is highly polished. It's a cost benefit for you. Should you spent $20,000 to get an extra $300/month? Each situation is unique.

Keep in mind that localities are increasingly imposing annual rent percentage increase caps. In Oregon, it's 3% per year plus a specific rate of inflation. Also, you must provide 90 days notice. Other localities are more restrictive so do your homework. 

I have 2 property management companies and managing repairs is part of the service provided for the 10% fee. 

Quote from @Nate Cade:

Just received some recent updated quotes for insurance premiums for rental properties. Renewal is more than 60 days out, but the numbers are redonkuless. Up 150% from before. 

Anyone else seeing these rapid increased rates? They want $3000 for a property worth $150,000 (at best) with rent far under.

Any suggested insurers or agents??

Nate - Milwaukee

What is the replacement cost of the property? There are a fair amount of locations in the country where the home values are selling far below replacement value.

One of the risks or issues with not keeping the rents close to market is that your cost of repairs, insurance, and property taxes are grinding higher each year and your net is going down. Additionally, more localities are capping rent increase percentages and you don't want to end with your hands tied and rentals significantly under market. 

As a short term solution, you could get a few electric space heaters to warm the place up.

Unfortunately, with the ongoing worker shortage, many businesses are backed up much longer than the historic average. Adding to this is the surge in demand that HVAC companies often encounter when the temperatures start cooling down. It's possible that the PM has submitted a work order and is in cue for the repair. Nevertheless, they should have communicated this to you. You could call a few HVAC companies to get a feel for their time frames. 

When buying a property, it is best to use your own competent inspector. If the selling company provided the report, there is a clear conflict of interest.
That being said, you will have to look at the foundation warranty and the area that they repaired to determine if the damaged area is under warranty. I think your contractor is correct in that the foundation company will do everything they can to not spend money on the issue. You are best to call around and get 3 companies to give you opinions and bids.
A plumber can give you advise on the sewer line. It's possible there was a sewer leak that saturated the ground and caused the foundation to settle. Of coarse, the settling may have caused the sewer to leak thus further aggravating the issue-difficult to prove either way.