Come with me and see what happens when a deal goes BAD 7 posts by 6 users

Posted: 08/02/2008 at 07:09AM

A little history. I bought this place for $52K in '03, put about $2K into it and sold it for $75, 2 1/2 years later I foreclose and the IDIOTS had;

1. Thrown away a really cool " franklin' stove (or sold it)
2. Done some " custom" sheetrock work, bullnose corners, coffered ceiling in den, " archway" between den and dining/kitchen. Some of it was good work, some was unfinished, some looked like hammered s**t.
3. Ceramic tile on the counter tops. 6" tile, NO BULLNOSES or rounded edges at the front, did not use hardi backer, just glued it to the plywood. Hammered s**t would be a compliment to this job.
4. Put copper foil on the backsplashes, didn't actaully look too bad because it was new and shiny.
5. Threw away most of the casing he had taken down, some was in a pile in the back yard and I salvaged about 1/3 of it.
6. Hosed the carpet.

So I finish the sheetrock ($1100) added central heat and air ($5500) which was an upgrade, new carpet ($1800) and resell it for $92K.

My new buyers decide they want to be landlords, despite not knowing anything about how to do it. They rent to a single mom who can't afford it, water heater goes out and they have to late pay me because they have no reserves, tenant's boyfriend moves in, dealing drugs, beating her and kid, sherrif at the door twice a week.

Despite being on a well (free water) they NEVER WATER the front lawn so it dies.

I just got it back two weeks ago and went to take a look! @%&!!

Someone (probably ex tenant) kicked in 4 of the interior doors, two big holes in the walls, cherry kool aid stains on carpet, dead lawn, cut some wires in the walls, NEVER cleaned the kitchen and looks like used lard to cook everything, the cooktop looks like a couple of " smallish fires" may have happened and the (original, 1979) oven has NEVER BEEN CLEANED, oh and to top it off we have a family of THREE SKUNKS LIVING IN THE CRAWL SPACE.

And of course I no longer live 6 miles from this place, I live 950 miles away.

I just spent 1 1/2 weeks working on it, about 30 " contractor size" garbage bags, 5 gallons of paint, a million small things that you always run into.

Anyway I found a " craigslist" cooktop and wall oven for pretty cheap, my wife helped a lot, even though she hates RE investing and my neighbor has been a godsend because the trash service only picks up the rolling dumpster, NOTHING ELSE, so he has hauled the other stuff to the dumpster at his work.

I'm heading back to TX to hit the kitchen, exterior paint, front yard and finish the interior paint (oil base on the trim). I'll have an air mattress, the stove works and there is a " working" fridge in the place. I've got a Mr. Coffee (thank god) and enough cookery to do OK with. My former neighbor lets me use his ladders and some other power tools (gas weedeater etc) so I don't have to haul that stuff around.

My (plan?, wish?, hope?, prayer) idea is that I'll have it in the paper next week for about $100K-$105K and offer some " fix up rebates" to any hardworking young couple for work done over the next three years-carpet, roof, landscaping, windows. If not I may be spending too much time in TX instead of up in CO which really POs Mrs. allcash.

This is why I haven't been on here in a couple of weeks.

Wish me well.

cash

Posted: 08/02/2008 at 10:03PM

wow, that is SCARY

hope it works better for you, why dont you just try to sell it retail in case the 'karma' is bad with that one

Posted: 08/04/2008 at 12:53PM

WOW! In retrospect, is there anything you would have done differently in order to have avoided all of this mess?

Posted: 08/14/2008 at 09:44AM

That's why I don't carry paper.

The only time I seller finance is when the property can't be bank financed and I want an enormous down payment.

Those of you who do finance, should at least do enough reference checking to verify that the buyers are someone you would rent to.