All Forum Posts by: Deddy W.

Hello good folks of BP,

I have a problem on my recent property sale. It goes like this...

I sold a rented 4-plex in Arizona to a private buyer. I used a property management company to manage this property for about 3 years. At the beginning of escrow, I disclosed the current leases and the escrow closed smoothly. A couple weeks after closing, the buyer came back to me and mentioned that my property management company signed new leases and filled the vacant unit with new tenant during the escrow process (after I signed the contract but before the escrow closes).

The new leases are 1 year long and the new owner is not happy as he cannot raise the rents. Property management said that renewing leases and signing new leases are SOP and they do not need owner's permission or have to notify me in the process. Thus, I was not aware of the new leases at any given point of time during escrow.

As of now, the sale has closed, I got the money and it is on the record. The buyer is threatening to undo the sale or claim for damages as they were not disclosed of the new leases.

Do you guys have any opinion on this case?

Cheers,

Deddy

Hello good folks of BP,

I need your suggestion on how to deal with Code Enforcement Inspector in San Jose, CA for unpermitted work. Here goes the story:

I purchased the property, in July 2017, it is a Single Family Home in San Jose Downtown area. The previous owner had remodeled the whole house without permit and had converted the garage into a 1 bed 1 bath. The original house is about 1400 sqft, 3 bed 3 bath, lot size is 4410 sqft, zoning R2. Right after I purchased, I had my contractor came over and did some work on the house. Now the not fun part...

A San Jose Code Enforcement Inspector sticked his name card in front of my front door. When I called him, he mentioned that he got a complaint from my neighbor, so he came over and took pictures through the windows and front glass door of the current work that is being done. He came over the next day and mentioned that I do not have permit on the record for all the remodel, electrical work and everything. He said houses in the area was originally built with 1-2 bathrooms, so he said the bathroom addition was unpermitted as well. Also the converted garage need to be converted back. He left after asking for my phone number.

I'd like to get some thoughts on this matter from BP folks, what do you think is the best course of action on resolving the inspection?

Also, if possible I'd like to keep the converted garage. Claiming it as accessory dwelling unit seems out of the question since the lot size is only 4410 sqft. However, with the R2 zoning, do you guys think I could claim it as a duplex?

Many thanks in advance! I'd really like to get out of this mess as soon as possible and continue investing

Hello good folks of BP,

I need your suggestion on how to deal with Code Enforcement Inspector in San Jose, CA for unpermitted work. Here goes the story:

I purchased the property, in July 2017, it is a Single Family Home in San Jose Downtown area. The previous owner had remodeled the whole house without permit and had converted the garage into a 1 bed 1 bath. The original house is about 1400 sqft, 3 bed 3 bath, lot size is 4410 sqft, zoning R2. Right after I purchased, I had my contractor came over and did some work on the house. Now the not fun part...

A San Jose Code Enforcement Inspector sticked his name card in front of my front door. When I called him, he mentioned that he got a complaint from my neighbor, so he came over and took pictures through the windows and front glass door of the current work that is being done. He came over the next day and mentioned that I do not have permit on the record for all the remodel, electrical work and everything. He said houses in the area was originally built with 1-2 bathrooms, so he said the bathroom addition was unpermitted as well. Also the converted garage need to be converted back. He left after asking for my phone number.

I'd like to get some thoughts on this matter from BP folks, what do you think is the best course of action on resolving the inspection? 

Also, if possible I'd like to keep the converted garage. Claiming it as accessory dwelling unit seems out of the question since the lot size is only 4410 sqft. However, with the R2 zoning, do you guys think I could claim it as a duplex?

Many thanks in advance! I'd really like to get out of this mess as soon as possible and continue investing

Hello again good folks of BP,

I asked my PM for details and here is her explanation of the situation:

"Because the bowing of the floor is not so pronounced it doesn’t reflect on the pictures. Not to mention the tenant has various pieces of furniture in the living room. I took a picture of the tiles now missing. The tenant removed the broken pieces and covers the area with a rug. There are 6 tiles missing. When you walk the area around this section the tiles/floor feel loose but they are not fully detached. I calculate these are about 6 more tiles.

The uncovered area feels soft. Not enough to break with the center table that sits on top of it.

Hope this helps.

Regards,"

Has any of you encountered an issue like this before? Is it worth fixing? I am being quoted $1.5K++ to fix this, do you guys think it is fair and necessary?

Thanks!

Deddy

Thanks for the replies BP folks,

I'll see if my PM can provide a photo evidence. I'll also get a second opinion from inspector in the area.

I'll let you know how it goes!

Deddy

@Adam Johnson, my thoughts exactly. This is not the first time that my property manager came in with repair quotes that were not in the inspection. It is either the PM making stuffs up or the inspector did not do a good job inspecting.

Do you guys know how can I get a second opinion other than my property manager? And yes, I live in a different state from my rental property.

Deddy

The tenant said it was already that way before they moved in, but it just happen to bow down on their period :(.

I will try to get some pictures from my property manager.

No, I was not aware of the installation. My property manager came up with this a couple months after I purchased the property. This issue was not reported by the property inspector prior to my purchase. So I assume it happened sometime after the inspection.

I believe the tile was not professionally installed.

Hello people of BP,

I have a 4-plex in Mesa AZ that is two-storied. One of the second floor tenant installed tile floor on her unit - as the result, the floor bowed down due to the weight of the tiles. I tried to file a claim to my insurance company, but they call it as "wrongful installation" thus denying the claim.

How do you deal with situation like this? Do you ask your tenant to contribute? I got an estimate from my property manager that the cost of repair will be north of $1.5K >__<.

Thanks!

Deddy