Our sale of that bad property to a house flipper just went to shit! Damn, damn, damn
We weren't even going to make enough to fully pay off the Deed of Trust! And now it seems it isn't even worth that much! We may have to default on the loan, cuz I don't know what else to do. Can't get blood out of this turnip, and since it's IRA $ we can't pay for it with our own $$ (like we don't have it anyway).
After inspection here's what we know it needs and they want from us before they will buy it: repairs totaling over $32,000 ! If we did that we would lose $100,000 on one stinkin' property....
1. Septic inspection and repair $3000....(Hell, we weren't even told it had a septic by IPX!) Once again, violating the law by not providing that addendum and getting the septic permit transferred to us... How does he get away with this?
2. Complete roof down including the substrate and eaves and re-pitch $14,000.... this is a rather flat old, old roof from the 70's that has had years of water accumulation and wood rot. And the pitch is not current code.
3. Repair or replace the floor joists over the crawl space. $15,000 to $25,000 depending on what they find when the floors are ripped up. The water barrier is rotted and the insulation has been chewed away by rodents and termites.
We might as well bulldoze it and sell the parcel empty! Because there is so much more in the inspectors report, if we were to try and renovate to sell....like....
Electrical panels (2) both need complete replacement to handle the load and come up to code : plus evaluate the old original wiring throughout (including additions that who know who did the work) best case scenario: $12,000
A/C unit is taking it's last breaths, and is way too big for the house, so that is a code issue: $5,500
Multiple plumbing code and just rotten old work : conservatively, that adds another $3,000
Old, old windows are loose and almost non functional... needs new... don't have estimate but hopefully could be done for $3,000
and of course, termite treatment to include entire crawl space is another $700
My next post will be "let's do the math" and "show me the money".....