You need to get the water and electricity turned on. You cannot properly inspect a property without utilities on. There could be plumbing issues although you are in a warm climate so frozen pipes not a concern. If you are willing to take full risk and buy without an inspection, that would be your choice but not recommended. You need to know what you are buying.... more
I would look at this as a practical matter. That is if you have your heart set on the area and an older home is the only option.
Look at the structural integrity of the home, what type of plumbing does it have (materials used), and what condition is the electrical in? What condition is the heating/cooling in?
i would then set aside moneys each month for unexpected repairs.
There are additional inspection techniques and tools that can be used such as optical cameras that can scope underground sewer lines for cracks or damage. Old wires might have been compromised by rodents. I've seen 20yr old homes with a 220 power cable eaten completely through by rodents. They ate the plastic casing.
Home inspections are usually considered "general" inspections. Meaning they dont look at every little thing. They are there to get a general sense of the condition of the home. That is why I would set up a repair fund for an older home.
Additionally, we also have a list of great handyman helpers if you would need one. They are very reasonably prices.
Bottom line: Get a respected home inspector that will give you a good idea of the general health of the home. Make sure you get the main systems of the home in good repair (roof, heating cooling, electrical, and foundation/structure). Have a home repair budget and/or update account. This type of account will also help you keep the home updated for a better resale value.
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The legal side of this isn't pretty, as a "knew or should have known" standard generally applies.
The buyer has the burden of proof to show the seller had actual knowledge that the defect was material, and if repairs were attempted, that the seller knew the repairs were deficient.
Or if there was no actual knowledge, that under the circumstances any reasonable seller would know the defect was material, and if repairs were attempted, that the seller should have known the repairs were deficient.
Since most sellers aren't foundation specialists, and these problems are usually concealed by floor coverings, proving the above can be difficult. Being able to prove actual knowledge is often the key.
I can refer you to a attorney who does real estate litigation if you wish to pursue this further. Let me know.... more
There are many factors to look at. 1. Are you good with money? 2. Can your money make you more money else were? 3. How long are you keeping this? 4. Do you need the cash flow? 5. Taxes??? If you're good with money it is always better to use other peopleâ€™s money. If you have good credit. Were your buying has a lot to do with it also. I can sell you a home in AL. for 29k and get you a $700.00 a month return guaranteed. Our I can sell you one in AZ. you'll pay 60k it will be in the sticks and harder to rent and get you the same return about $700.00 a month and no guarantee so you need to invest with numbers not your heart! Thatâ€™s people biggest mistake this is not for you! It is a numbers game. You will never loss if you remember that! I have 6 in Az. and even with how the market tanked, I did not lose a penny! Investing is numbers, not gambling you make money from the day you buy or you don't buy! Never bank on equity thatâ€™s a bonus! Shelly Nemeth 480-703-8860 I do wholesale all over the US..... more
We've been working with several banks on their REO inventory for over three years. Our experience suggests that you will not get much of a discount and typically none. In some cases you'll pay more for the property because it is priced agressively, it's location is good, and the house conforms to the general likes of the market. This usually places the home into a bidding situation where the bank will ask for a best and final offer from each party of interest. Your best approach is to find a property that your interested in and work with your agent to determine its market value. Determine any repairs needed and add that into you comp analysis. If the home meets your model beanchmarks jump on it before it's sold.... more