I want to buy an investment property in East Dearborn
I have been scouring real estate listings for the last few days for cheap houses. I made a list of houses that I liked. But I've realized that I can't really tell if they are any good. Example: One was going for ~30k. Reading the listing it says I have to have an escrow with the city (or something to that effect) for 40k. I asked and was told it was for repairs. I don't have any credit. I was planning to make an all-cash offer. Does that mean I have to put up 70k for the house plus escrow and then do ~40k worth of repair work? That would put me out of my budget by quite a bit.
Also, does ACR mean the same thing (ie forking over a huge wad of cash to the city of Dearborn)? I see it a lot but I can't figure out what it stands for.
Mon Mar 10 2008, 00:00 - Dearborn - Home Buying - 1 answer
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Mike, The City of Dearborn performs an inspection of every home prior to sale. Whatever problems the inspectors find MUST be repaired, usually by licensed contractors, before a Certificate of Occupancy will be issued.
You may be able to purchase a 10 percent bond for repairs when you purchase but expect 7-8 pages of things requiring repair and inspection of any porch roofs. The City is estimating repairs will cost 40,000. I suggest going to the City building dept and asking questions. You should also ask and review the required repairs for one of these homes before making an offer. ACR is Affidavit of Compliance and Responsibility You will be swearing to make repairs and be responsible. Many cities in Michigan perform similar inspections and require repairs completed either within 6 months of purchase or prior to sale. I suggest getting a Buyers Agent to reprisent your interests and help you in the purchase of a home. Please view the sample real estate forms on the website below. Mon Mar 10 2008, 06:36 Web Reference: http://www.mi-living.com
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