All Forum Posts by: Kris Mead

@Kris Mead
Just sell it vacant. Trying to put another tenant in there will just result in another headache. 

Hi Kris,

If you believe you are looking for a needle in a haystack maybe this zip is not for you.

If you believe you can find a needle in a haystack, maybe this zip is for you.

Good Luck!

@Kris Mead

If it makes decent cash flow I would seller finance it to someone.

To me it sounds like you hit the perfect storm all at once. I have had my share. To me, the main problem is your incompetent PM. I assume all your other properties are in better areas. If so, of course they can handle them. Most can. In the bad areas most legitimate PMs will tell you they don't service those areas. You will have to search and search until you can find one who is competent enough to do it. I couldnt and had to manage mine from Afghanistan. Ignore people who tell you it's impossible to get good tenants in a bad area. I would never take advice from them. It takes longer, skills, ability, diligence and strategy. Its obvious your PM did a terrible job at screening and managing the situation. Another element which contributed to your storm is the bad area itself. As stated, you can get good tenants and manage them effectively but you have to know what you are doing. The other end to your storm is the tenants not reporting stuff so it could be addressed. Sorry this happend but that is how it goes sometimes. If you are out of town it may be very hard to find the right PM. Also, if you are not making wide cash flow the effort may not be worth it and you may want to cut your losses. If you do chose to roll with it, it can be very intense and time consuming. It's critical that you get a professional and competent team on the ground who gives a **** and has the ability to execute an intelligent strategy.   

 I'd agree - I think the area sucks and the bad tenants are just a byproduct of that. 

Unless something major is happening to revitalize the area (I don't believe there is) I don't think it's worth keeping.

On top of that, class C/D areas should cashflow WAY more - there's much more inherent risk - so you need the extra cashflow to mitigate that risk (which is doesn't sound like you're getting)

Also you have to tenant proof these areas - so my sinks and bathtubs all have grids installed where the drain is. These kinds of things prevent the tenant from putting anything down there. I do cement flooring because they can't crack a tile, scratch it etc etc. Make it as simple and stupid proof as you can

Cut your loss and move on

The toilet was running and they never reported it they were also having issues with the sewer drain plugging up and sometimes backing up into the tub which they were able to fix on their own most of time but obviously the issue was never resolved because it kept coming back. ---> I found this to be very strange, so you know already you have this problem but don't actively make a permanent solution ? have you tried hydrojetting before? is there clean cleanout in sewer systems ??

Anything related to sewer is a bit scary, we got to be more proactive before something happens.

@Kris Mead

Just an aside. The fact that the tenants just leave rather than hunkering down and not paying until you get an eviction order of possession is a BLESSING in a D class location. It could have been a lot worse. Trust me!