Deal gone bad, need advice please

[John Pruner]

Hi,

I came into contact with an Atlanta rehab/investor named Andy on BP in Feb or Mar of this year (2014). He had a house for sale in Altanta that needed some major rehab work (about $15k). The house was not in a great neighborhood but was on an owner-occupied block, near bus stop, train, and some new construction so seems to be in a neighborhood that is improving. 

I bought the house for $20,781 which included $8000 financed by the seller and a payoff of all outstanding tax liens and other liens for water bill etc on the house for about $8000.

Prior to the sale, Andy was very easy to reach - we had many phone conversations about the planned rehab and future sale of the house. We signed a JV that he'd rehab the house, take videos, keep good records, etc.

The sale closed on 3/27/14. Since that time Andy has responded only a few times to attempted communications. I would say that in the 5+ since close he has responded perhaps 3 or 4 times to my many texts and emails and phone calls (which always go to voicemail). He told me over the 5 and a half months that he's busy (obviously since as soon as I bought the house the long friendly conversations came to a screeching halt). He told me that the city inspector wants electrical re-wired to the curb and he has 2 bids to do it for $4k and $7k but the $4k electrician isn't available. Other than that I know nothing about the house other than its' address and a video of it made in perhaps Jan 2014.

Andy has the keys to the house. I asked him about insurance and he said "we have insurance" but when I asked him later who the insurance is with he hasn't responded - similar to almost every other attempt at communication with him.

I know that a property tax bill will be upcoming on the house for about $1200 in November. I also took a HELOC against my primary residence to buy the house and I'm paying interest on that to the tune of about $100 per month. So my total carrying costs are $200 per month. I'm worried about insurance on the house since at this point it's hard to trust that Andy has done anything about that even though he said he took care of it. And thinking about it now it doesn't make sense to me that he'd carry insurance on my place anyway.

I called a real estate agent in Atlanta who was familiar with the house (listed it in previously) and that agent felt that the house is in a neighborhood that is improving and in demand, and that the house could be rented out after decent rehab for about $800 - $900 per month or be sold pretty easily after rehab since there is good demand by buyers in that neighborhood.

I'm live in Denver so now that my partner on this deal, the seller Andy, has been basically unavailable for 5+ months I'm not sure how to proceed. I sent a text and email to him asking for the keys to the house but like every other attempt at communication I'm sure he'll ignore it. I do have the deed to the house.

What steps should I take? I've no idea how to get the keys to the house or any control over the property. If I'm able to actually get the keys then I could try to rehab the house and rent it using a property management company, or sell it without rehab. I feel quite lost without any eyes, ears, hands on the ground in Atlanta. It's still hard to believe that my JV partner who'd have long conversations with me before I sent money to buy the house and pay off the liens, has gone almost completely silent.

To do either a sale or a rehab-rent I need keys and to do rehab I'd need a trustworthy and reliable and honest general contractor to estimate rehab and do rehab in Atlanta I guess. I would have to pay off the $8000 to Andy in any case although without his response to any communication I'm not sure how to do that. He has never sent me a signed copy of our JV despite my requests (I signed and sent to him then silence began).

Advice?

Thanks