All Forum Posts by: Kevin Harris

@Wesley W.

Update; Renter won judgement for $8000, The judge told me I had no right to move their shed even though it was against the lease agreement and against Indianapolis building code to place it there. I recently sold the property for $48k. I paid $29k plus collected $10k in rent, so even with the judgement, it was still a $20k net win.(40%ish profit).

Lessons learned:

The second I saw the new shed on my property, I should have took them straight to small claims for breach of contract.

I should have never appeared in small claims court without an attorney, I will never make this mistake again.

Conclusion:

I still made a net profit off of this property even including the small claims judgment fiasco. We are all going to make mistakes on our real estate journey. My education on this property could save me tens of thousands in the future. I wish I would have played my hand differently, but I do not regret anything.

I will move forward and these lessons will only improve my decisions in real estate investing in the future.

“I have never lost, I have won and I have learned”.

Kevin Harris

@Ryan B. $8000 is the limit now. It used to be $5000

@Mike Franco. They financed the shed for $3500, quit paying and got sued. The finance company won judgement for $8,000 for penalties, fees and interest.

@Kian Atkinson my lease agreement did have that clause in it.

Update: I lost the small claims case, tenant won judgement for $8k. I plan to appeal and take it to a real court. Judge said it was their personal property and I was not allowed to move it. The court was ridiculous, like watching a bad episode of judge Judy.

@Dennis M. The guy that moved it sold it. Since this is a structure that required two different permits to be placed there, I’m not really sure that it qualifies as personal property. I think that it is exempt from the 90 day holding period.

I was served papers yesterday, I did not sell it, I had it removed

Tenant removed my shed and replaced it with a larger one. Tenant gave me 30 days notice to vacate. After 45 days, tenant moved out and left the shed, I learned that because of its size, it required a permit to be there, which tenant never acquired. I had it removed because I was worried I would get fined by the city. 10 months later, tenant is suing me for 8k for the cost of the shed that they had ample time to remove. Tenant is claiming a law that says any property a tenant leaves, landlord must keep for a period of one year so the tenant has time to reclaim their property. Is this true? What is the best way to move forward to win this case? Any help is appreciated.

If you need anyone to scout some properties here, let me know.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $29,000

Cash invested: $5,000

Bought it seller financing for $29,000, 10% down, paid the note off in 4 years. Taxes and insurance are $100 a month, rents for $650. Worth about $50k now after improvements.  Market rent is probably $700-$750.

What made you interested in investing in this type of deal?

Cash flow and appreciation.

How did you find this deal and how did you negotiate it?

Found on craigslist as a rental. Landlord was elderly and ready to cash out.

How did you finance this deal?

Seller financing. 10% down, amortized over 6 years. Paid off in 4 years.

How did you add value to the deal?

Relocated washer and dryer hookups and water heater to a more desirable location. New cabinets and counter top, little electrical and plumbing and lots of paint. Did 100% of the work myself very cheaply.

What was the outcome?

Appreciation of $20k (80%ish) and $550 month cashflow.

Lessons learned? Challenges?

Should have paid more people to do the work.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

None.