All Forum Posts by: Bill Tyler

Thanks @Larry T  I have only heard horror stories about short sales - mainly from the long wait times for the lenders to make a decision, and how many times the potential deals fall apart. 

I recently attended a REI meeting here in Dallas/Ft. Worth and the speaker stated "When someone calls you with a problem - THEY have the problem, you do not pick it. Offer a solution to THEIR problem."

With that in mind - as I peruse the latest Pre-foreclosure listing for Tarrant County, what solutions would you offer someone that is underwater in their property?  I am seeing some as low as a few hundred dollars underwater all the way up to nearly $50,000 underwater.  Everyone on the listing is basically having the same problems - but I am too new to think of ways to help anyone so far underwater (other than walk away). Like many others, I'm focusing on the properties with at least a certain amount of equity in them. 

www.YellowLetters.com

Welcome to BP.

Since you have gutted the kitchen and done most of the work yourself and are asking for a higher end rent for your area, I would go with stainless.  But, don't go "cheap" and put used appliances in a brand new kitchen.  You can visit your local Lowes stores and get new appliances for about the same as you are willing to pay for used.  Their "clearance" section in appliances is full of special orders, scratch & dents (not visible from the front), and overstocks that are incredible deals.  Get to know some of the department managers and find out when their inventory is each year, and when the new models are shipped.  I have a store about 6 miles from me that during inventory each year will mark new appliances to 50% off if they have duplicate displays on the sales floor.  Whatever your choice - make sure the refrigerator has an icemaker installed.  It sounds very trivial, but you would be surprised how many people I've come across that appreciate that feature that many times is a free option from many manufacturers.

Definitely change them all at once. Buy a good quality and make sure to get a discount on the purchase and installation (Lowes is good if you use their LAR Card and your delivery fee is only about $20).

Can anyone recommend an attorney here in Dallas/Ft. Worth? A friend is having issues with a landlord from hell. After 2 years of renting from her, they chose not to renew since she decided to raise their rent by nearly $400/month (in an area where they were already at the top end of market rate). They gave 60 days notice, left the house clean and took pictures, and moved out the end of May.  She has now contacted them demanding $5,000 in addition to their security deposit to pay for damages.  She is trying to bill them for damage to the roof, changing the security alarm company (they didn't even activate the security alarm), AND she's trying to get them to pay rent for June (with late fees) and July.

Evidently she is really hurting for cash now that she has bought a new luxury vehicle and no one is willing to rent from her.  The potential tenants she had lined up bailed when she demanded 1st months rent, last months rent, AND a security deposit that equaled 1 months rent ($4800 to move into her rental).  My friend complained that while they rented from her she made no repairs, would not answer any phone calls, they had NO address to send her certified mail and would only respond via text when it was time for the rent.

I am still pretty new to BP - does anyone have an attorney here in Dallas/Ft.Worth that they would recommend?  What about any other actions that my friend should take?  Usually the situations are Tenants from Hell - this is a first for me.

Definitely NO! And DO NOT let them put in an above ground pool either (unless it's one of the $20 plastic ones from Walmart).  That can leave YOU open for a lot of liability if someone gets injured or drowns. 

Those do look very good.  Do the other houses in the neighborhood look to be in similar condition?  If the interiors aren't bad - you might be able to flip them pretty easily. 

 @Randy E. makes some very good points. As you know - the Detroit housing market is very unique and presents lots of challenges and risks.  

Depending on the houses and areas - your rehab costs are liable to be much greater than you would expect.  From my property dealings in Detroit, you will probably need (at the very least): windows, electrical, HVAC, and plumbing.  Search for good contractors that are NON-UNION that will work inside the city.  It will save you a lot of money.  I usually use Wallside Windows for replacement windows (double hung, low E glass, argon filled) at an average of $350/window installed.  If you are in the Boston Edison District or a few others you may have a few restrictions to keep things looking in the period. Use PEX instead of copper or galvanized for the plumbing (no scrap value and a better product). 

Having a good friend stay at the property paying a little rent is a good idea.  You definitely need to sit down and work out a plan for the rehabs and exit strategy.  Do you want to do a full rehab going down to the "bones" and add proper insulation, get rid of old knob & tube wiring, etc? or just basic rehab?  Rent it out or sell it?  

Good luck!  It's a risky market but can provide a nice reward if you cover all your bases.