Good morning,BP! What was your worst deal?

[Daniel Brown]

Good morning guys and gals! I'm always seeing what transcends into a good deal. I'm curious though, what was your worst deal or hardest struggle with a property? Was it the PM? Did you make a mistake on the numbers? Location? Tennant problems? Please share! 😁

[Rich Senyszyn]

Buying a new car right out of school.  Dumb. 

I slowly dug out of a home renovation-to later become a rental.  A few years ago I began working on my house to prepare for renting.  Adding a bathroom and 2 other rooms.  Didn't use licensed contractors.  Used Thumbtack to get "a guy...I am Trustworthy was his motto".  It was my first venture in using contractors.  Eventually I needed a lawyer to get him off the property. I had to have his stuff towed away-another several month process. Found him playing guitar one evening in the property with a girl.  I wonder if he slept there sometimes. When I finally got licensed people, the plumber had to redo all the plumbing, elecrician had to rip all the wiring out.  I was basically left with studs.  Beercans found in walls. Luckily, the whole ordeal only set me back 25K.  Since then, I've made it up.  Now I have:

1. A contractor I trust and does work at reasonable prices

2. A licensensed eletrician.

3. Still looking for a reasonable licensed plumber, but the contractor usually takes care of this.

4. A good and reasonably priced property management company to deal with tenants.

I have to remind myself "Only used licensed people, only used licensed people."  More expensive, but I made up the money over three other properties with the work being good, fast completion, higher rents from better quality, and it was not really THAT more expensive in the end.  Thank God my brother is a lawyer and got me out of the above situation which took some time.