All Forum Posts by: Mike Welch

A good outcome to report.

After multiple calls, I finally sent an email containing a link to this message board post, and to the image of the gas meter. I received a call today from a SW Gas representative. They offered to either 1) move the gas line (at my expense), or 2) install posts to prevent vehicle damage. I opted for the second option and they've agreed to attend to it this week.

Thanks again to everyone who replied and encouraged me to pursue this! This could have prevented a major accident.

Hi Uuri,

Welcome to BP! I'm also a San Francisco resident living in Hayes Valley. The real estate market in SF is quite unique to say the least. It reflects the economic principle of supply and demand. With only about 7 miles width and depth, coupled with tight city coding, the city does not have enough units to satisfy demand to live here.

In addition, the social media bubble on top of explosive growth from companies such as Apple and Google has created a situation where many newly wealthy holders of stock options in said concerns are able to bid up the price of properties beyond long term value.

I could also mention the extreme bias towards tenants that exists in San Francisco. Suffice it to say, I'd advise you to become well read on local laws and ordinances that impact landlords if you choose to let out your unit. I recommend consulting the SF Tenants Union website. That organization publishes a manual (written for the benefit of the tenant) that every landlord should read.

This conditions have caused me to be a resident (and property owner) in SF, but to make my real estate investments elsewhere.

Lenders in San Francisco are, as you note, very hesitant to lend except to those who have a solid work history. It can be very difficult when you're an entrepreneur or work for a start up that does not have well established funding. Remember too that you'll be competing against many cash buyers who've just traded in their Zynga, Facebook, etc., options.

I looked into acquiring a SFR in the Bay Area earlier this year, but was overwhelmed by the amount of all cash offers (over asking) I had to compete with. In the end, I decided to: 1) keep my condo, 2) improve it, and 3) invest in real estate in other markets to create alt cash flow streams.

It is all enough to make one's head spin...In any case, SF has a ton to offer. I wish you success whatever path you decide on.

I agree with the posters who recommend you find another deal. The connection you have through your family to the seller, along with his request to remain a tenant after the sale, are both red flags.

Lenders have evolved the practice of short sales significantly since 2008. They are very alert to the potential of collusion. I recommend reading the interview linked below:

http://speakingofrealestate.blogs.realtor.org/2011/08/29/are-your-short-sale-clients-colluding/

Thanks to everyone for your comments. I've alerted SW Gas in writing, and have spoken with two dispatchers regarding the situation. I'll pursue this as far as possible with the gas company as I believe protecting the meter is their responsibility and should not be an expense absorbed by the home owner.

I believe the seller has a legal obligation to the lending institutions to submit all offers for consideration. In one instance, a bank might prefer an all cash offer over a (higher) offer with finance contingencies.

Furthermore, there is a requirement that the seller not be associated with the buyer. When I purchased a short sale from Chase two years ago, both myself and the seller were required to sign an 'arms length' affidavit wherein we stated we 1) did not personally know one another, and that 2) we had not entered into any agreements regarding the property prior to the transaction.

So, your seller will most likely encounter legal difficulties should he try to negotiate his continued occupancy of the house after the short sale.

I would recommend contacting the bank directly if you feel your offer is not going to be presented.

Just an update on this topic:

The gas company local to this property, Southwest Gas, refuses any possibility that the meter might be a danger to occupants. When asked if they would inspect, and either 1) move the meter, or 2) place posts in front to protect it from vehicles, they stated: "it is where it is for a good reason, and the city has already approved it, otherwise it wouldn't be there."

Based on this picture, would any of you be concerned to have a gas meter positioned like this directly in the driveway of one of your rental properties?

Materials cost is $2.50 sq ft and labor is $3.40 sq ft.

Also, I should have noted: the second picture is the 'before' of the living room before laying down the tile.

I am in the process of renovating my second long term hold. I purchased a 3/2 in a nice neighborhood in Arizona in October. This property has a really nice wood beamed ceiling which is a distinctive, attention grabbing feature.

The flooring was carpet that was old and needed to be replaced. I considered wood flooring, but did not want the expense or maintenance. A flooring contractor recommended the Esmer Heritage tile and had a few samples handy.

My goal is long term durability but also to provide flooring that accentuates the look and feel of the property. Haven't rented this house yet, but it has added a 'wow' factor which did not exist previously.

Here is the current view from the front entrance:

So far, delighted with the decision. Hoping it works out. Any others with experience with this (or similar) tile?

Mark H. - The contractor is installing Esmer Heritage tiles over 727 sq ft. His materials cost is $2.50 sq ft and his labor is $3.40 sq ft. In addition, he's charging me a 'floor prep' fee of $140 in addition to these expenses.

I'm in the midst of renovating a house to serve as a long term rental. I hired a contractor to put in a tile flooring with the look and feel of wood. The contractor gave me a bid that included 'Floor Prep' as a line item.

Now, the job is 90% complete, the contractor called me (I'm out of state) and told me that he had to level out the concrete floor in the living room in order to complete the install. He's telling me this will cost another $375 because it was more than he had planned for. In fairness, the area was carpeted before and he could not see what was under the carpet until it was removed.

The contractor did not inform me before beginning down this path. Now that he is almost complete with the project, he is presenting me with another unplanned expense.

How do you deal with contractors that introduce new fees during the project? Should I insist he complete this under his original 'order and sales agreement' (note: this is how he presented his bid, not as an 'estimate'). Should I simply pay the extra money and be done with it?