All Forum Posts by: Jason Krick

I came across an REO with disclosed soil contamination. The underground oil tank was removed, and it leaked into the soil. That's all I know at this point. I don't know the extent. The listing agent made it a point to say that the house and surrounding area is on municipal water and sewer, so it "shouldn't be much of an issue, but it must be disclosed."

I have searched through threads on this site, and the general consensus is to run away.   Here are my questions:

Is it ever worthwhile to buy a property such as this to flip? Would the price ever be attractive enough to give it a go? Does the municipal water/sewer make a difference in remediation standards? Finally, I know I would have to disclose it at the time of resale, showing the remediation, and to expect a discount off typical ARV. How much would this issue discount the property, if properly remediated, and everything else rehabbed? 10, 20, 30%?

The house is currently listed, IMO, about $100K below ARV. The inside of the house looks great. I would assume I would have to hire a qualified company to dig up the contamination and replace with clean fill. I would also decide on whether to get a new oil tank (it has radiators), or retrofit a forced air system for AC/heat. Everything else looks to be modern and up to date, with minimal work needed. Depending on the costs, could this be viable? The area is extremely desirable in the most desirable school district.

Was searching short sales and came across this description on the listing:

This place has a brand new doorknob!! Property sold as is for now. Place is a mess. Home is in Foreclosure status and has not been cleaned out yet. Radiators appear to have blown out. Home needs total rehab. This is a short sale.
The doorknob comment is great!

1) Make the blog available 2) Allow access to the calculators 3) allow messaging Issues 1) App will crash randomly 2) photos in the posts often will not display 3) Clicking on a member does not show entire profile 4) very long posts are cut off so the rest of it can't be read

Robert,

I have been to a few in Berks County, but never purchased, so take this with a grain of salt.  In Berks County, 10% of the judgement amount will be listed as the down payment. So, a judgement of $120,000 will have a $12,000 down payment.  I believe that is what is due immediately when the gavel drops.  I have not seen/heard the upset amount stated.  The lawyers all sit upfront, and continue to bid until they are awarded the property, or are outbid.  As far as starting bid, I do not know where they come up with that number.  Some of the many more experienced investors will chime in, I am sure.

Where's the OP????? @Cowan Bucks you have some of the best members on this site having an amazing discussion on your post!  I hope you are following this.  It's been great and very educational for me, personally.  Even though this situation doesn't pertain to me, I love reading how all these men and women think and perceive situations.

Great thread!

@Joe Villeneuve @Jay Hinrichs 

So, which of these options are preferable, as many others are faced with this:

1). The OP buys a duplex, rented both sides out, and cash flows $300. (For the sake of argument). Now, he has to live somewhere and pay, let's say $900 mortgage on another property, or $1,000 rent.

2)  He buys the duplex, rents one half and stays in the other.  His monthly payment is $300 to cover expenses, maintenance, vacancies, etc.

Which is the more desirable scenario?

@Cowan Bucks I know Antietam has some of the highest property taxes around.  Maybe Millmont, Northmont, Temple, etc., all have the same property classes.  That might make your numbers more viable.

@Cowan Bucks I am local to you and also looking for my first deal.  What neighborhoods in the Reading/Berks area are looking at?

@Melaines Gil If you are still looking for info, I sent you a pm and colleague request.  I will assist if I can.

@Orion Walker Congratulations!  I have been looking for a bank that does the Homestyle as well.  Great job landing one!