All Forum Posts by: Gary B.

Hi Fellows,

i have a new tenant, she works for adult care facility. From day one she is trying to trying to make up things to get free rent by giving empty threats. Following is sequence of events:

1. Tenant moved in 68 days ago, PM gave her the lock box code and she moved in two days before actual move in date.

2. Property was delivered clean to her in walk through with empty garage and we had pictures. 

3, she claims when she came in property was in mess, more junk in garage was there. She claims that she spend all day cleaning the whole house. Threatened to have pictures but never shared them. Garage had junk (not sure how it landed there) which we promptly removed. 

4. Next, Toilet rings was leaking and PM promptly fixed the issue

5. Next, she was getting mild electric shock from refrigerator. Moment she reported I replaced the fridge and later found out it was lose neutral issue which electrician fixed and installed grounding. she cancelled twice the appointment before we could get access to fix this.

5. its a 1950's build house so it does not have grounding, i needed to get into home to fix the grounding issue for all outlets. Month goes by and she gives and cancel appointment to  electrician.

6. Now, she say washing machine is pumping back dirty water in kitchen and bathroom. 

7. Then she reports that heater is not working and she went ahead and bough three room heaters for each room and lost the receipt but wants me to pay for it.

8. Then we get access to home after giving her 24 hour notice. 

Findings: Heater pilot light was off and we turned it on and it was up and working. We ran snake test on drainage and also tested washing machine - no dirty water coming issue discovered. Also, we grounded whole house.

9. Today she reports that house has dry mould and insulation issues and she is getting health issues with it. Baseless again, we getting experts to verify it this week.

10. She claims her mom (who is not on lease) pacemaker got reset with fridge electric shock and she facing health problems because of mold and she has missed work and risk of losing job. 

So settlement offer yesterday was that give me one month free rent or pay my medical bills. We did say no

Today she say return all my rent + security or pay my medical bills. with new story of mold and health issues + job issues.

11. bottom line i have all the email communication to show that she is trying to find a reason to make money from landlord. 

12. she has 10 months on the lease, can you suggest how can i get rid of this tenant. She is a young girl working for an assisted living facility and sort of passed basic background checks. We are also following up with her old landlord to understand more about her. 

I will highly appreciate any guidance here.

Best, Gary

@George Yu thanks for your advise. Was land acquisition cost also part of construction loan ? Curious 20% of what they asked for.

@George Yu - this is amazing and inspiring story. It is unbelievable how you managed to get this project under budget and on time. Construction, esp ground up, no everyone's cup of tea.

I am exploring to convert an existing hospital into apartments. Can you share more experience with construction loan ? how much interest reserve you had to give and how much city costs you had to take care? Any recommendation how to shop for construction loan and modeling you used to project after repair value ? 

thx !

@Stephanie Moran we do screening but no references. But once in a while such tenants slip through. Reference check will be a good idea.

BTW property is in Roseville, CA

Thanks everyone for response, it is very helpful. I have asked my property manager to post a 24 hour notice to enter the property. 

Hi Fellow investors, I have a tenant who is just moved in. For some reason toilet was leaking and Property manager promptly fixed the issue. She then reported the refrigerator give an electric shock. we promptly replaced with new fridge. She then she reported that fridge and oven both give electric shock, since that day she is not letting us in the property. She has been cancelling appointments last min. Not giving us any time to come into the appointment. 

Please advise how to handle this situation, shall i get a layer because she definitely abusing tenant rights.

Thanks, Gary

@Tj - this for the advise. Yup i think bridge loan will be a good option. 

Hi @Dave Darinis, I have not found finalized a lender yet. i am still in process to make plans and stuff before i know how much i need to borrow. This property is in Fresno, CA area. Do you have any recommendations?

Best, Gary 

@Greg Dickerson thanks for excellent advise. I owe you a response and it is on my list.