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<p>Yes, that is right if you are buying in an 650$/sf area, but I am buying in a $250-270/sf area(for 1000 sf houses). There is certain risks over there. Here are the negatives of that location:</p>
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<li>For me that is 30 miles drive one way</li>
<li>The house is directly across the street of an oil refinery. You can hear the engine running and the tall stack smoking in distance not more than 1000 ft away.</li>
<li>The first day I went to inspect the property, I met the neighbor next door. The first thing he said was a complaint that the garage encroached his property for 2 feet and he is threaten to ask for compensation from the new owner.</li>
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<p>To me, if the investment risk is not accounted for, my time to rehab this house is worth as much as If I can make $80K on a $360k house.</p>
<p>How much do they charge you for the sewer replacement? Do they work by the hour? or charge by the job?</p>
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<p>Welcome to the neighborhood!</p>
<p>Sewer replacement:</p>
<p>Luckily my lead who is my employee and is paid by hour through regular payroll can do excellent plumbing. In the last 4 years he has made two mistakes in configuration that were called out by a professional plumber during a buyer’s inspection. I can live with two mistakes in 4 years - they weren’t leaks or anything, just minor errors in how he routed some P traps under sinks. We chalk it up to lessons learned.</p>
<p>So, I buy all the materials in numerous runs and he does the plumbing with one of the other workers as a helper. He is not as lightning fast as an extremely experienced plumber, and he probably does not know exactly which fittings he needs all the way through the house before he starts. So, there are some inefficiencies between his thinking through things carefully and me having to run to the store a million times.</p>
<p>But, I have had such problems trying to find a plumber that I trust. In the last 3 projects I’ve had two ‘plumbing companies’ that are just way too expensive and can’t show up for weeks. Or, I’ve had idiot crazy guys. That last plumber with the tankless water heater is turning out to have a screw loose (this is the guy that showed up with a 6 pak of beer to sit on the sofa during the Open House on last project). He stopped calling me asking for work and now he calls my lead every week or so with crazy stories and looking for work. He charges $50/hour and I don’t want him anywhere near us again. </p>
<p>So, I cannot give a good estimate for sewer replacement because I am using my own employees and not a plumbing company. This is OK because I am an owner. All of his work passed City inspection on the last project with no issues.</p>
<p>For reference I estimate the following for 900sf house with 1 1/2 baths (I am adding a half bath), laundry hookups (need to add these), and kitchen - Sewer Lines Only:</p>
<p>$600 materials
$870 Labor (not including my employer taxes and workman’s comp overhead)</p>
<p>So, in general about $1,500</p>
<p>I would not purchase a property that has hostile neighbors before you ever even own it. I have had such good luck with neighbors being so nice and helpful. They are usually so grateful that the derelict house next door is getting fixed up (like the last project).</p>
<p>I must say that especially on these very small lots I have sympathy for a neighbor who has had 2 feet stolen by a prior owner!</p>
<p>The guy wants a survey to determine the property line and he wants compensation if there is encrochement. I told him there is no way the town will ask the new owner to tear down the garage because it’s there for a long time. Then he proceed to say that the storage behind the garage must be teared down because it may not be permitted. I bid it any way because he looks like want work and he is an Electrition. </p>
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<p>Yes, but the garage is there from twenty or thirty years ago(judged from the building material), this neighbor just bought his house in REO less than three years ago. He just want to profit from the new owner. The prior owner of this property was a drug addict and a dealer, they sold drugs out of the house I am bidding for over 10 years and the neighbor is afraid to approach them. The mentality of taking advantage of an investor is repulsive.</p>
<p>Ah, I see. Yes, it sounds like he should be thanking his lucky stars. </p>
<p>Besides, doesn’t adverse possession apply, if the garage has been their for 20 or 30 years? I guess it varies by state, but I would venture to guess that he doesn’t have a legal leg to stand on.</p>
<p>In reality, you are probably right on adverse possession. But the motion to ask for a survey and seek compensation can scare the buyers away. I want to buy a house, not a lawsuit.</p>
<p>The neighbor across street of my resident was served a lawsuit from his neighbor on day one after he moved in. Regardless of the nature of the lawsuit and the title company coverage, it ended up to cost him two year of time and 30-40k out of pocket.</p>
<p>I’m trying to understand how a judge would rule about something in place for 30 years that suddenly is being sued to new owner.</p>
<p>BTW, I just found out that you can pay the title company an extra fee for the Prelim Title report that includes a survey boundary review. Someone comes out from the title company and reviews based on legal description. Very worth it in this case.</p>
<p>If you are bidding on an auction property that’s only going to have a Quitclaim Deed make sure you do a full title search. If you need help, PM me.</p>
<p>No this is a Realtor listed REO, bidding going through the Realtor. When they called me to revise my bid/offer, there were only 3 bidders, now they told me there were 15 and not accepting new bids.</p>
<p>I can fully understand the judge’s position. But anyone can sue anyone here in the liberal state of California. Just get tangled into a lawsuit is very undesirable regardless the merit of the case.</p>
<p>I am tangled in a lawsuit right now because I evicted the prior owner, regardless the merit of the case, the insurance company had already spent 40K legal fees.</p>
<p>When you talk about review boundaries, cb. Do you mean they will do a instrument shoot and stake the corners? If not, how do they review?</p>
<p>As a commercial realtor I have ordered many surveys, the cost of a full survey including verifying the easements will cost around 3K. </p>
<p>Can’t you just survey the line in question? That ought to be cheaper.</p>
<p>Yes consolation, I will do that if I won. 
With 15 bidders, no one knows who will win the bid.
Its like that all over CA, there is no free lunch any more. Competition is fierce for VACANT homes that needs major renovation.</p>
<p>My understanding of adverse possession is that it is a tricky area, and lawyers and often the courts will be involved to resolve issues. It is not as open and shut as “I used it for 20 or 30 years”.</p>
<p>You are absolutely right, NRE. From court of law, they look differently. </p>
<p>The accusation in my case is fraud, because I evicted the prior owner? From layman’s point of view, “I bought the house and you live there rent free, when I ask the sheriff legally evict you and you sue me for Fraud?” In the court of law, it is not only possible but also denied our Demurrer. This case, if not settled by mediation, will go to a full jury. Well, we live in a democratic society, as I said, anyone can sue anyone without even a merit.</p>
<p>^ I got sued in a slip-and-fall case… it took 6 years to make it to the trial, which lasted only one day, and it took the jury 14 minutes to find in my favor.</p>
<p>Fortunately my insurance covered all the costs.</p>
<p>Juries aren’t dumb, they can tell when people are trying for a payoff.</p>
<p>^^ and you should see those greedy lawyers.</p>
<p>In my case, the lawyer for the plaintiff trick the court to put me in default. My lawyer had it be retracted. But in the interim, they send a “damage” bill, they sue me among all the stuff, including “return” their “home”, a 50 MILLION dollar additional rewards for "pain and suffering and mental anguish ". Of course that was a joke, but what kind of society we are in here and what kind of greedy lawyers we are having? </p>
<p>Perhaps that is the reason why the law schools are so expensive, so the graduates can recover all their expenses from birth to death in one frivolous lawsuit. 
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<p>Artlover, so it is an REO? Just so I can save some of my sanity… let’s use ‘bid’ when you are making bids at an auction and the word ‘offer’ when you are writing offers for properties that are for sale through regular channels. I was so confused :)</p>
<p>Regarding title company boundary review, I do not know the details, but since you are working through a regular transaction that will have title insurance, you should include that in your title request, at buyer’s cost. However, a lot of the banks that are selling REOs use cut-rate title companies - LPS as an example. These title companies sneak in an exception in their coverage called ‘Western Regional Exceptions’ and that bit me later when I was selling a house. I can guarantee they don’t provide this service</p>