All Forum Posts by: Andy K

Thanks everyone for the replies and the advice. The security deposit we got was one month's rent ($1500) at the time of signing the lease. The home is a mid-level rental in a good community. The tenants have paid the rent on time each month during the time they have lived there. They keep saying they have been very careful with what they throw down the sewer. And that nobody from their home has thrown the tissues to have caused this. But that is what the plumber found was the cause of the blockage when he was clearing the sewer line. And the paper product wouldn't have been there unless it was thrown by the someone from the home.

Hi all,

We have a rental property, where we had a sewer line backup happen in February last year. The sewer water came out of the toilet on the first level and destroyed the carpet, drywall, etc. Had to call the insurance company and they paid for the home sanitization and part of the restoration (I had a deuctible of $2500). The reason of the backup was found to be paper towels (that do not dissolve in the water) in the sewer pipe that were thrown in there by the tenants, and caused the obstruction. I warned the tenants at that time to not throw paper products in the sewer that can cause back-ups. I did not charge them for any of the cost that time. Most of it was covered by the insurance, and I had to pay for some because of my deductible. Due to my claim last year, the insurance company raised my premium from $850 to $1800 at the renewal!

One year has passed by, and I received a call again yesterday from the tenants that the sewer line has backed up again and water is coming out of the toilet!! I sent a plumber there immediately, and the reason this time as well was facial tissues in the sewer line that caused the obstruction. The damage is lesser this time than last year, but the home will need to be sanitized and some carpet/drywall replaced. I won't be calling the insurance company this time and plan to fix it on my own.

My question is - since this backup has been caused again by tenant negligience and no fault of the sewer line in the home, is it fine to ask the tenants to pay for some of the cost of the sanitization and restoration? I am estimating the total cost to be in the $2500 range, and I don't see why they should not be held responsible for at least part of the cost. They are tenants who pay on time, and I have not had any issues with them, other than this. I would not have bothered if it were a couple hundred dollars, but the cost involved in this work is pretty high.

I would really appreciate any advice from experienced landlords on how I should handle this matter. Thanks for your help.

- Andy.

Hello all,

We purchased a non-performing note last year for a single family home in Detroit (Wayne County, MI). Our servicing company sent several letters to the borrower about doing a loan modification, but he never responded. A realtor we know in the area also went by the home a few times, but was not successful in finding the borrower at home. So, with no other option left, we began the foreclosure process in May, and the foreclosure auction took place in early August.

Michigan law allows the borrower 6 months redemption period from the foreclosure auction date, during which the borrower can live in the property. 

Our question is - since its 6 more months (early Feb of next year) before we can go on title, what can we do to keep the property safe from the borrower destroying it, or from it being vandalized during this time? We know there is a good chance the borrower is living in the property because he tried to delay/stop the foreclosure by sending a notice to the attorney asking for some documentation.  But he never responds to letters sent to him.

Any suggestions on what investors have done to protect their investment during the redemption period? If the property is damaged by the borrower or someone else, it will loose most of its value and become a loss to us (we have already spent quite a bit on this investment with the note purchase, monthly servicing fees, attorney costs for foreclosure, etc). Hence we would like to prevent that from happening.

Any suggestions are most appreciated. Thanks for your help.

- Andy.

Hi all,

We refinanced an investment property we own in Riverside county, CA about 3 years ago. We have somehow managed to mis-place the file that had all the loan docs! I wanted to ask if it is possible to get a copy of the documents (mainly interested in the Note and Deed of Trust) from Riverside county? Is there a way to make an application online and get a copy of the docs from the Riverside county website, or any other way? I appreciate your advice on this matter. Thanks.

Hi all,

I would like some advice from the more experienced investors on the forum.

We have a family that lives in a rental property we own. They have been there for close to 4 years and have paid the rent each month (they have been late in paying the rent sometimes, but after some follow-up with them, they have paid it). They did not pay the rent in March, and after talking to them, the tenant told me he lost his job recently. He said he would get the money to pay the rent soon, and with them being there for 4 years, we gave him some time. Now it has come to a point where March and April rent is not paid, and May rent will be due in a week. Since we didn't see any other option, we sent them a 3-day pay or move notice this week.

I would rather not pursue the eviction route on these tenants if it is not needed. The last couple times that we had to evict someone, they left the property in a mess, and one of them contested the eviction case just to buy 2 more months of free rent. So it cost us a lot more in time and stress when we did the eviction. I would rather just have these tenants move out and get the property back in good shape as soon as possible, so that I can do the clean-up and rent out the home again.

My question is - how should I approach this issue? What can I say to the tenants, so that they may agree to move out of the home in a week or two, and leave the home in decent shape without causing any major damage? In the end, if they don't move out, I will have to pursue the eviction route to get possession of the property. But I rather not do that if it is not needed.

Any advice on how I could handle this case is much appreciated. Thanks for your help.

- Andy.

Hi all,

We need to install new carpet in 3 bedrooms in a mid-end rental property in So Cal, and I would like some advice on which is the best type of carpet to install. I did some reading online, and came up with the below parameters on which the choice of carpet can be based:

Carpet material: Nylon/Polyester(PET)/Triexta, etc

Carpet cut: Cut-pile/Plush/Berber/Loop, etc

Carpet Face weight: 14oz/17oz/25oz, etc

Carpet pad: 8lbs, etc..

I spoke to a few carpet stores in town, but each one of them told me a different choice. So, at this point, I am not very clear on the best one to install.

Bedrooms are generally lower traffic areas, so the carpet may not go through a lot of wear and tear, like the stairs? I would like the carpet to be economical in price, but also not so flimsy that it falls apart and I would need to replace it again after 2 years. 

Can folks please suggest which carpet type will be a good one to use, based on parameters like carpet material, the cut, face weight, etc. Also, how much do you pay for cost/yard including labor+material? And which stores in So Cal can I get the carpet at the best price? Thanks for your help.

- Andy.

Thanks @Scott K. for the information regarding the Longacre neighborhood.

In which areas in Detroit and the surrounding suburbs would folks suggest investing in for cashflow? Where the neighborhoods are safe, and there are good public facilities like schools, police, etc. Also, it will be good to know the numbers as well. Like at what price can a single family home in decent shape be bought for, and the rent it can get. Thanks.

@Scott K. No, I have not been to Detroit before.The first 2 #s of the Longacre property address are "12". There is someone living in the property right now. Do empty homes get vandalized pretty much in all neighborhoods in Detroit, or only in the not-so-good ones? Thanks.

Also, how is the neighborhood around Longacre St in Detroit? The realtor I am working with says this is among one of the better neighborhoods in Detroit and there are not many abandoned homes in this neighborhood. Since I am not a native of Detroit, I wanted to ask folks living and familiar with the Detroit area about their opinion of this neighborhood. Thanks for your help.

Thanks @Adam Smith and @Jeff Rabinowitz for the info. It matches pretty much with what I was able to find out from the Wayne County website. Below is the timeline they mention. 

It says "Property owners may redeem their property by paying the taxes, interest, and fees by March 31st or lose their property.". There are no details I have been able to find so far about how the property can be redeemed after that. I am sure there must be a way though. So, in short, for 2012 unpaid property taxes, one has till March 2015 to make a payment and keep the property for sure.

PUBLIC ACT 123 TIMELINE

• July/December 2011: 2011 property taxes billed by city, township or county treasurer.
• March 1, 2012: Unpaid 2011 property taxes are forwarded to county treasurer for collection.
  State law requires a 4% administration fee and 1% per month interest.
• October 1, 2012: A $15 fee is added to each parcel.
• March 1, 2013: Property is forfeited to county treasurer. State law requires the addition
  of a $175 fee and $26 in recording fees. Interest increased from 1% per month to 1.5% per month,
  back to the date the taxes became delinquent.
• March 28, 2014: Circuit Court enters a judgment of foreclosure. Property owners may redeem
  their property by paying the taxes, interest, and fees by March 31st or lose their property.
• April 1, 2014: Property is foreclosed. Property owners lose all rights. Title to the property passes
  to the county treasurer. Property owners that submitted an unsuccessful objection to being foreclosed have until April 18, 2014 to redeem.
• September & October 2014: Property is sold at public auction.