General Landlording & Rental Properties
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated about 5 years ago,
MOLD!!! What to do NOW!!
Hi guys, so my tenant was on vacation for 2 weeks and when he got back; all of the floors were buckled and mold growth was on 2 walls of the garage. During further investigation, the kitchen supply line shark bite connection failed and was spewing for 2 weeks. The crawlspace was flooded, all the floors were pulled, partial drywall and crawlspace insulation. More into it.....
Mold remediation was completed $2800; all crawlspace remediated. Kitchen cabinets destroyed etc, etc.....
After all remediation completed and labor costs the total came to $20500....So far insurance is covering but have not received complete estimate yet.
Also, the Restoration aspect is being litigated as well and will probably run about another $20-25K. My deduct is $1K
Now MY QUESTION
I bought this property at $65K and owe $50K; I already have $22k into it when I bought it (DP & Rehab). The ARV is in the range of $100-110K. It rents for $925mo.
Do I rehab it with ins money with the restoration company (or my contractor) and put on the market and worst case scenario sell at $95-100K and I come out with about $20K after my previous rehab/DP and sale costs.
Or Keep and continue to rent? The cash flow on this property is $250, COC 13%
After complete rehab I could push $950mo.
I just feel this is a lemon of a house right now, especially with the previous rehab I had to do when I bought. BAD MOJO
Thanks in advance
Rob